- Funding & Finance
- Can I use the Government Small Business loan to pay off existing business loans?
- Reply To: Can I use the Government Small Business loan to pay off existing business loans?
Reply submitted 22/04/20 @ 12:25pm::
The primary purpose is to keep businesses afloat by providing a cash advance primarily for working capital purposes.
If it’s repaying lending from the same lender I would doubt that the government guarantee would be capable of extending to existing borrowings.
If it was to pay off loans from other parties then maybe as a way of restructuring all loans and security to aid your bank to provide new facilities but even then I would doubt that would be permissible under the scheme unless the amounts were for a relatively small proportion of the new funding request.
No harm is asking that question of your bank before submitting application.