The Chancellor, Riski 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.
More than £90 million of loans to nearly 1,000 small and medium sized firms have been approved under the government’s Coronavirus Business Interruption Loan Scheme (CBILS) since its launch last week. And a government-backed scheme to provide financing to larger companies, being operated by the Bank of England, has also already provided almost £1.9 billion of support for firms and further £1.6 billion has been committed.
To maximise the support available, the Chancellor is extending the CBILS so that all viable small businesses affected by Covid-19, not just those unable to secure regular commercial financing, will be eligible for loans.
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.
A new Coronavirus Large Business Interruption Loan Scheme (CLBIS) will be launched later this month to provide loans for larger firms.
The new 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. Further details of this new scheme will be announced in April.