Deadline extended for Government backed loans

Along with the extensions announced for the Coronavirus Job Retention Scheme and the Self Employment Income Support Scheme, the Treasury have also confirmed that they will be extending the deadlines for all government backed loans. These will include the Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), the Bounce Back Loan Scheme (BBLS) and the Future Fund, aimed at innovative start-ups.

The deadlines for each were originally set for 30 November 2020 but they have now all been extended until 31 January 2021. However, if you intend to apply then don’t delay as most lenders will have a lot of applications to get through and you might be asked to supply additional information.

The length of the loans, initially capped at six years, were also extended to allow repayment terms over 10 years as part of the Winter Economy Plan.

The BBLS offers loans for up to 25% of turnover, capped at a maximum of £50,000 and many businesses only requested what they needed at the time they applied. However, due to the impact of the ongoing restrictions, the Government have now announced that businesses will be able to top up these loans if they didn’t apply for the full amount at the outset and need the additional funding. The Treasury are yet to supply further information on this but we know it will be available from 9 November and can only be used once.

Ross Oliphant, Partner, comments, “It’s good to see the Government offering further flexibility on the various loans available for businesses and we welcome the two month extension to 31 January 2021. It is highly likely that trading conditions will remain challenging well in to 2021, so allowing business owners additional time to assess their cashflow requirements which have been impacted by the newly introduced restrictions, will provide some relief. However, the Government does need to take a longer term view on the recovery of the economy and structure the support accordingly.”

If you would like to discuss your circumstances and clarify the support available, please contact your usual EQ contact or call one of our offices.