The Chancellor Rishi Sunak is today (Friday 3 April) taking further action to support firms affected by the coronavirus crisis by bolstering business interruption loans for small businesses and announcing a new scheme for larger companies.
The new Coronavirus Large Business Interruption Loan Scheme (CLBILS) will ensure that more firms are able to benefit from government-backed support during this difficult time. The changes include:
- To maximise the support available, the Chancellor is extending the CBILS so that all viable small businesses affected by COVID-19, and not just those unable to secure regular commercial financing, will now be eligible should they need finance to keep operating during this difficult time.
- Ban on lenders requesting personal guarantees for loans under £250,000 and making operational changes to speed up lending approvals.
- The government will continue to cover the first twelve months of interest and fees.
- Firms with turnover £45m-£500m will be able to access loans of up to £25 million. Loans backed by a guarantee under CLBILS will be offered at commercial rates of interest and further details of the scheme will be announced later this month.
Commenting on the changes James said, "Some firms in West Norfolk told me Coronavirus Business Interruption Loan scheme wasn’t working well for them and banks were offering commercial loans at high interest rates rather than using the scheme. To make sure they get support I made sure ministers knew what was happening on the ground. The Chancellor listened and these changes should help firms access loans as this very challenging time."
https://www.gov.uk/government/news/chancellor-strengthens-support-on-of…
