Access to Coronavirus business loans widened

3 April 2020  

Garages looking for support from government could now find it easier to access Coronavirus Business Interruption Loans, following an overhaul of the scheme.

In response to feedback received since the scheme’s launch two weeks ago, Chancellor Rishi Sunak extended the scheme last night (Thursday 2 April). Now, all viable small businesses affected by Covid-19 will now be eligible, not just those unable to secure regular commercial financing.In addition, lenders are being barred from asking for personal guarantees on loans of less than £250,000.

The Chancellor 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.”

The Chancellor also announced the new Coronavirus Large Business Interruption Loan Scheme (CLBILS). This will offer loans up to £25m, and is intended firms with an annual turnover of between £45m and £500m. These will come with a Government guarantee of 80%.

The Chancellor said: “Now I am taking further action by extending our generous loan scheme so even more businesses can benefit. We have also listened to the concerns of some larger businesses affected by Covid-19 and are announcing new support so they can benefit too.

He added: “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.”

There are 40 accredited lenders able to offer the scheme, including all the major banks. The scheme is expected to run for six months initially. There is no limit on the capacity of the scheme. For more information go to: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/current-accredited-lenders-and-partners