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Last week, HM Treasury announced improvements to the Coronavirus Business Interruption Loan Scheme (CBILS) to assist more businesses to access assistance from the government.
The changes are being put in place to improve access to business interruption loans for small businesses and to provide a new scheme for larger companies.
The Chancellor, Rishi Sunak has stated that £90.5 million of business interruption loans have been approved for nearly 1,000 firms and £1.9 billion of corporate finance has been provided to firms hit by the coronavirus.
The key points of the newly announced changes are:
- The existing CBILS scheme has been extended so that more small businesses can benefit.
- Importantly, now all viable small businesses affected by COVID-19 will be eligible and not just those unable to secure regular commercial financing.
- Businesses can self-certify that they have been impacted by COVID-19 and lenders have been banned from requesting personal guarantees on loans under £250,000.
- A new scheme has been announced to enhance support for larger firms that are not currently eligible for loans.
- The chancellor has emphasised that lenders must move quickly to support the economy, jobs and businesses.
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