The government have approved for accredited lenders to be given an extra two months to consider applications for finance under the coronavirus business interruption loans scheme (CBILS). When the government set up the schemes, it said that it was temporary and would last six months. The British Business Bank said it continues to review applications from a wide range of lender types – from PRA-regulated banks, to platform lenders, debt funds, invoice finance lenders, asset finance lenders and responsible finance lenders.
The government published statistics show over 1.2m businesses have to date benefited from loans and grants worth £52.65bn through schemes. Bounce back loans (BBLs) remain the most popular, with 1.17m firms receiving £35.4bn, while 516 borrowers have accessed £3.5bn through the coronavirus large business interruption loan scheme.
The scheme was due to end on September 30th but calls for an extension mean an extra two months to process and approve applications has been allowed, pushing the end date back to November 30th. Banking trade body UK Finance said the update “provides welcome clarity for businesses and should help give more firms the chance to access the finance they need.”
Following the recent EU changes in State Aid Law relating to the ‘undertaking in difficulty’ test for businesses, the British Business Bank has amended its Coronavirus Business Interruption Loan Scheme. The amendment means 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 undertakings in difficulty unless they are (a) subject to collective insolvency procedure under national law, or (b) in receipt of rescue aid (which has not been repaid) or restructuring aid (and are still subject to a restructuring plan).
If you wish to apply for the “Bounce Back Loan” you will need to speak with your bank to begin the process. Providers are mainly only accepting (or prioritising) existing customers first. Check out our other Nordens article on the Bounce Back Loan Scheme to find a full list of bank providers, as well as their application forms HERE.
Should you need assistance with determining your turnover or you would like more information on how to attain these loans, contact our expert team strategic team on 02085300720 or email businessdevelopment@nordens.co.uk
