Changes to the Coronavirus Business Interruption Loan Scheme for smaller businesses Category: COVID-19EQ News - Posted On: Jul 17 2020 The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial assistance to businesses that have suffered cashflow disruptions as a direct result of COVID-19. The British Business Bank has announced amendments to the scheme due to the recent EU changes in State Aid Law that will increase access to CBILS for smaller businesses. Prior to the change, the law meant that many companies facing ‘financial difficulty’ on 31 December 2019 would not be eligible for bank loans. Lenders have heavily relied on legislation to determine which SMEs to grant much-needed coronavirus loans to and these changes to the CBILS scheme ensure SMEs will not miss out on cash that could help them survive. These amendments will take affect from 30 July 2020 and mean that smaller businesses with fewer than 50 employees and less than £9,000,000 in annual turnover and/or annual balance sheet will not be considered to be ‘undertaking in difficulty’ unless they unless they meet specified criteria. Those with more than 50 employers or more than £9,000,000 in annual turnover and/or annual balance sheet will still be subject to the ‘Undertaking in Difficulty’ test as defined by the European Union. Applicants will be required to determine their turnover and number of employees in line with EU regulation concerning the definition of micro, small and medium-sized enterprises. This change will allow lenders to offer help to businesses who had previously been unable to apply for the CBILS. If you think you fall into this category, and need help with your application, 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
Changes to the Coronavirus Business Interruption Loan Scheme for smaller businesses Category: COVID-19EQ News - Posted On: Jul 17 2020 The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial assistance to businesses that have suffered cashflow disruptions as a direct result of COVID-19. The British Business Bank has announced amendments to the scheme due to the recent EU changes in State Aid Law that will increase access to CBILS for smaller businesses. Prior to the change, the law meant that many companies facing ‘financial difficulty’ on 31 December 2019 would not be eligible for bank loans. Lenders have heavily relied on legislation to determine which SMEs to grant much-needed coronavirus loans to and these changes to the CBILS scheme ensure SMEs will not miss out on cash that could help them survive. These amendments will take affect from 30 July 2020 and mean that smaller businesses with fewer than 50 employees and less than £9,000,000 in annual turnover and/or annual balance sheet will not be considered to be ‘undertaking in difficulty’ unless they unless they meet specified criteria. Those with more than 50 employers or more than £9,000,000 in annual turnover and/or annual balance sheet will still be subject to the ‘Undertaking in Difficulty’ test as defined by the European Union. Applicants will be required to determine their turnover and number of employees in line with EU regulation concerning the definition of micro, small and medium-sized enterprises. This change will allow lenders to offer help to businesses who had previously been unable to apply for the CBILS. If you think you fall into this category, and need help with your application, 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