The Government has announced changes to the Coronavirus Business Interruption Loan Scheme (CBILS):
- lenders are banned from requesting personal guarantees on loans under £250,000
- all viable businesses can access the scheme, not just those unable to secure other loans
- a new scheme has been established for firms with turnover over £45m
To read more about CBILS and other government support for business, see the Government Support section of the IoD's Coronavirus Support Hub.
Responding to the announcement of these changes, Jonathan Geldart, Director General of the Institute of Directors, said:
“These are sensible, welcome measures, and should clear the way for more businesses to access the money they desperately need.
“Having to jump through hoops to reach the CBILS scheme has held up the process and caused deep frustration. Meanwhile, with so much uncertainty, it’s little wonder directors have balked at the prospect of hefty personal guarantees.
“It’s to the Chancellor’s credit that he continues to refine the Government’s approach in response to what’s happening on the ground. The Treasury has moved at pace to remove hold-ups in the support and must keep up this effort.
“In many cases, banks are working around the clock to help the Government’s support hit the front lines, and that shouldn’t go unrecognised. It’s important now that lenders respond to the changes quickly and get the money to companies, particularly small ones, who are only just staying afloat.”