Following reports that businesses were struggling to access Government support, the Chancellor has announced changes to the Coronavirus Business Interruption Loan Scheme(CBILS) to enable more business to access funds.
“Many small businesses are struggling as a result of this crisis and several have contacted me with difficulties trying to access the Coronavirus Business Interruption Loan Scheme. I’m very pleased that these changes have been brought in and will help to ensure those who need support can access it.
We must support businesses and protect people’s jobs and livelihoods, and this will mean that we will be in the best position to get through to the other side of this national emergency as soon as possible.” – Dr Ben Spencer
The changes to CBILS announced include:
- all viable small businesses that have been impacted by COVID-19 can benefit (rather than just those that couldn’t access commercial finance)
- no personal guarantees for loans below £250,000
- personal guarantees for loans above £250,000 will be limited to the 20% of the loan which is not backed by the Government guarantee
- operational changes to speed up the processing of applications, particularly those for smaller loans
- Larger firms with a turnover of up to £500m will also be eligible for more help - with state-backed loans of up to £25m available to firms with revenues of between £45m-500m
The government has pledged to guarantee £330bn of loans, however many banks had struggled to cope with applications due to reduced staff resources and a huge increase in demand.
For more details on the Scheme, including how to apply, please visit: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/for-businesses-and-advisors/
A list of accredited lenders who are part of the scheme is available here.