Covid-19 Chancellor confirms business loan scheme revamp
Rishi Sunak has confirmed he is 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 changes announced by the Chancellor will see the Coronavirus Business Interruption Loan Scheme extended 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 the pandemic.
The government is also stopping lenders from 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.
For larger businesses the new Coronavirus Large Business Interruption Loan Scheme will ensure that more firms are able to benefit from government-backed support during this difficult time.
This scheme will provide a government guarantee of 80% to enable banks to make loans of up to £25 million to firms with an annual turnover of between £45 million and £500 million.
A statement on the Government website states that these changes will “give banks the confidence to lend to more businesses which are impacted by coronavirus but which they would not lend to without CLBILS”.
Further details of the scheme for large businesses will be announced later this month and full details can be found on the government website by using the link below.