Broadening CBILS is good news for business01/09/2020
The Coronavirus Business Interruption Loan Scheme (CBILS) is being extended to encompass more small businesses around the country, giving them further access to government aid. You now have until September 30th to make an application, and the bank you make it to has until November 30th to approve or decline it.
This broadening of the scheme’s area of effect comes as result of a change to state aid rules. Previously coming under the auspices of the EU, smaller companies in the ‘undertakings in difficulty’ category were excluded from the CBILS. That changed on July 30th, and businesses with an annual turnover of less-than £9 million and fewer than 50 employees can finally access CBILS.
Chris Wilford, Head of Financial Services Policy at the Confederation of British Industry, welcomed the news. He said: “These eligibility hurdles have been a real stumbling block for many firms across the UK throughout the crisis.”
He added that previous regulations were not intentionally exclusionary, but were insufficient to help British business through the COVID-19 pandemic: “Those rules were established in normal times. They have had a real impact on the ability of some high-growth firms and those with more complex structures being able to access the loan schemes.”
CBILS allows small and medium-sized businesses to access loans and other kinds of finance up to £5 million. Under the scheme, the government guarantees 80% of the finance to the lender and pays interest and fees for the first year.
John Glen, Economic Secretary to the Treasury, said: “Our loan schemes have been a key part in supporting businesses, enabling them to bounce back as we kickstart the economy.”
CBILS could be a valuable tool in your business’s coronavirus recovery plan. At JW Hinks, we can make sure you make the most of it. Give us a call on 0121 456 0190 to find out how we can help.