Coronavirus Business Interruption Loan Scheme (CBILS)

Last Friday, amendments to the CBILS were announced.  All SME’s are now eligible, not just those that could not secure finance through normal means.  This was a major barrier.

Personal guarantees cannot be sought for loans of less that £250k.

For loans over £250k personal guarantee can be sought for 20% of the outstanding amount of the loan (the part not covered by the government).

These changes are to be backdated to loans already offered (or declined) under the scheme and expects to be operational with lenders from today (6th April 2020).

Coronavirus Large Business Interruption Loan Scheme (CLBILS)

The new CLBILS provides a government guarantee of 80% to banks to make loans of up to £25m to businesses with an annual turnover of £45m to £250m, and up to £50m for firms with a turnover of more than £250 million.

Lenders will still conduct their usual credit checks, but this scheme allows banks to specifically support businesses that were viable before the coronavirus outbreak but are now facing significant cash flow difficulties.

The scheme is not available yet but should be by the end of April.  Our advice to any business considering CLBILS is to make sure you have forecasts and other required information (as under CBILS) ready for lenders.

New Grants for Technology and Research Businesses

Grants of up to £50k will be available to technology and research focussed businesses to develop new ways of working and help build resilience in industries such as delivery services, good manufacturing, retail and transport, as well as businesses developing ways to support people at home in circumstances like those during the coronavirus outbreak.

Innovations could include:

  • new technology allowing retailers to respond better to sudden spikes of consumer demand and improve deliveries across the UK
  • new services for families to connect with and remotely monitor their elderly or vulnerable relatives, giving people peace of mind that their loved ones are receiving the services they require such as food deliveries, medical attention and paying bills
  • creating education tools which seamlessly integrate the classroom with the kitchen table, allowing teachers to remotely set dynamic tasks, support vulnerable children and make certain no child is left behind

Read more about this scheme HERE.

To see all our updates regarding coronavirus and business support, visit our coronavirus hub.