Update 6 April 2020
The recently launched Coronavirus Business Interruption Loan Scheme (CBILS) has now been significantly expanded along with changes to the scheme’s features and eligibility criteria. The changes mean even more smaller businesses across the UK impacted by the Coronavirus crisis can access the funding they need.
Importantly, access to the scheme has been opened up to those smaller businesses who would have previously met the requirements for a commercial facility but would not have been eligible for CBILS. This significantly increases the number of businesses eligible for the scheme. The expanded scheme will be operational with lenders from Monday 6th April 2020.
The CBILS Website will provide further details and remains the best source of up to date information and I would direct any queries here rather than to me initially.
New scheme features
After some of the horror stories I had read about, it is great to now have this clarity and the fact that some banks had been offering APR’s at 29%; yes 29%, I believe the Government has clamped down on this. I also believe that fewer business should now be getting forced down the commercial loan route first.
Don’t forget though it is all about responsible lending and if repayment is likely to be beyond the 12 month period then other options might be more suitable and actually cheaper.