The Chancellor has taken further action to support firms affected by coronavirus by bolstering business interruption loans and announcing a new scheme for larger companies. The new Coronavirus Large Business Interruption Loan Scheme (CLBILS) will ensure that more firms are able to benefit from government-backed support during this difficult time.
More than £90 million of loans to nearly 1,000 small and medium sized companies have been approved under the CBILS since its launch last week. Also a government-backed scheme to provide financing to larger companies has also provided almost £1.9 billion of support to firms.
Rishi Sunak is extending the CBILS so that all viable small businesses affected by COVID-19 will now be eligible should they need finance to keep operating during this difficult time.
The new CBILS 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.
The government is also stopping banks from requesting personal guarantees for loans under £250,000. Chancellor emphasised importance of banks moving quickly to support the economy, jobs and businesses so he will be making operational changes to speed up lending approvals.