Government extends coronavirus loan scheme to all SMEs

Eloise Hanson Eloise Hanson Uploaded 03 April 2020

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UK: Chancellor Rishi Sunak has unveiled new measures to extend the Coronavirus Business Interruption Loan Scheme (CBILS) to all viable small businesses affected by COVID-19, and also announced a scheme for larger companies.

The government’s CBILS was first launched for businesses unable to secure regular commercial financing during the crisis.

On 2 April, Sunak extended the CBILS to all viable small and medium sized businesses who have faced financial difficulty due to coronavirus.

The CBILS allows UK-based businesses with revenues of less than £45 million to apply for a loan, overdraft, invoice finance and asset finance of up to £5 million and for up to six years.

A new Coronavirus Large Business Interruption Loan Scheme (CLBILS), operated by the Bank of England, will also be available to companies with an annual turnover of between £45 million and £500 million.

A government guarantee of 80 per cent will enable banks to make loans of up to £25 million.

Sunak said: “We are making great progress on getting much-needed support out to businesses to help manage their cashflows during this difficult time – with millions of pounds of loans and finance being provided to hundreds of firms across the country.

“This is a national effort and we’ll continue to work with the financial services sector to ensure that the £330bn of government support, through loans and guarantees, reaches as many businesses in need as possible.”

According to the latest figures from UK Finance, £90 million loans to nearly 1,000 SMEs have been processed across the country.

This number is expected to increase in the coming days and weeks.

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