Amendments to the Coronavirus Business Interruption Loan Scheme Category: COVID-19EQ News - Posted On: Apr 6 2020 Since the introduction of the Coronavirus Business Interruption Loan Scheme (CBILS), there have been over 130,000 enquires from businesses across the UK. However, less than 1,000 businesses have had loans approved under the new Government scheme. With no restrictions on interest rates, banks were offering CBILS loans with interest rates of up to 30% and demanding personal guarantees from small businesses which led to much criticism of how big banks were applying the scheme. Responding to the concerns, Chancellor Rishi Sunak announced further amendments to the scheme on Friday 3 April to maximise the support for small businesses and introduced a new scheme for larger companies. The new amendments are: CLBILS will be offered at commercial rates of interest Lenders are banned from requesting personal guarantees on loans under £250,000 Operational changes to speed up lending approvals The government will continue to cover the first twelve months of interest and fees The introduction of the Coronavirus Large Business Interruption Loan Scheme, enabling banks to offer up to £25m loans for large businesses with turnover between £45m-£500m, not previously eligible under the CBILS. The chancellor is scheduled to talk with the banks later this week in order to allow more businesses to benefit from the scheme and to ensure “everyone is playing their part”. To discuss your own circumstances, please get in touch with your usual EQ contact who will provide support required or call one of our offices. All News View the latest news stories from all of our sectors. View All News News by category View the latest news stories from a specific sector. COVID-19 EQ News People Experienced Professional Graduate Intern RGU Placement School & College Leaver Services Audit & Reporting Corporate Finance EQ Accounting Bookkeeping Cloud Accounting Management Accounts Payroll Taxation International Tax Making Tax Digital Personal Tax Specialisms Agriculture Charities Engineering & Manufacturing Healthcare Leisure Food & Drink Professions Property & Construction Technology
Amendments to the Coronavirus Business Interruption Loan Scheme Category: COVID-19EQ News - Posted On: Apr 6 2020 Since the introduction of the Coronavirus Business Interruption Loan Scheme (CBILS), there have been over 130,000 enquires from businesses across the UK. However, less than 1,000 businesses have had loans approved under the new Government scheme. With no restrictions on interest rates, banks were offering CBILS loans with interest rates of up to 30% and demanding personal guarantees from small businesses which led to much criticism of how big banks were applying the scheme. Responding to the concerns, Chancellor Rishi Sunak announced further amendments to the scheme on Friday 3 April to maximise the support for small businesses and introduced a new scheme for larger companies. The new amendments are: CLBILS will be offered at commercial rates of interest Lenders are banned from requesting personal guarantees on loans under £250,000 Operational changes to speed up lending approvals The government will continue to cover the first twelve months of interest and fees The introduction of the Coronavirus Large Business Interruption Loan Scheme, enabling banks to offer up to £25m loans for large businesses with turnover between £45m-£500m, not previously eligible under the CBILS. The chancellor is scheduled to talk with the banks later this week in order to allow more businesses to benefit from the scheme and to ensure “everyone is playing their part”. To discuss your own circumstances, please get in touch with your usual EQ contact who will provide support required or call one of our offices. All News View the latest news stories from all of our sectors. View All News News by category View the latest news stories from a specific sector. COVID-19 EQ News People Experienced Professional Graduate Intern RGU Placement School & College Leaver Services Audit & Reporting Corporate Finance EQ Accounting Bookkeeping Cloud Accounting Management Accounts Payroll Taxation International Tax Making Tax Digital Personal Tax Specialisms Agriculture Charities Engineering & Manufacturing Healthcare Leisure Food & Drink Professions Property & Construction Technology