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Government further expands new loan scheme to support more businesses

06/04/2020

The government has announced a significant expansion to the Coronavirus Business Interruption Loan Scheme (CBILS), effective Monday 6th April.

The scheme was introduced to help businesses who are struggling financially due to the effects of the current COVID-19 pandemic to access vital funding to support cash flow.

Under the scheme, eligible businesses can apply to borrow up to £5 million from lenders in the form of a loan, overdraft, invoice finance or asset finance. The government is guaranteeing up to 80% of any losses incurred to encourage them to lend more freely, and paying the first 12 months’ interest on the loan as well as any arrangement fees.

But after initial criticism, the government has acted quickly to increase eligibility.

What new measures have been introduced?

The changes to the scheme have been made in the hope that more business will be able to rely on it. This includes opening up the scheme to all small businesses, rather than just those who lacked sufficient security and are unable to secure commercial finance otherwise.

The changes include:

It is hoped that these changes will increase the number of businesses who are eligible to benefit from the scheme.

Use our quote tool to get an instant indication of a potential facility structure, interest and monthly repayments, based on the current market:

Why are these new measures needed?

As the COVID-19 pandemic continues to disrupt daily life, many businesses are feeling the strain. These measures aim to give businesses access to much needed capital that they can use to keep themselves afloat during this period.

As time goes on, more and more businesses will find themselves looking to lenders and banks for support, and with the CBILS scheme, the government hopes to ensure that this support is available to as many businesses as possible.  

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