Under CBILS’ expansion, these businesses can now benefit from the scheme, so long as they self-certify the impact coronavirus has had on them and they have a viable borrowing proposal. “It is about time we throw SMEs a lifeline they can really hold onto, and ensure that they get immediate access to some much-needed cashflow to keep afloat,” Andrew Harding, chief executive, management accounting at the Association of International Certified Professional Accountants, said in a press release. Additionally, it is a nonsense in an environment where the Bank of England has now cut its base rate to 0.1 percent not to be able to access cheap money.” “Removing the need to be offered standard products first – with an interruption loan as an afterthought – marks a big step forward,” Mike Cherry, the national chairman of the Federation of Small Businesses, said in a press statement. “So too is ensuring small businesses can qualify for an emergency loan application on the basis of one simple criterion: whether or not you’ve been negatively impacted by the spread of coronavirus is the only question that counts at this juncture.” The British Business Bank has said that while viability assessment criteria has not changed, small loans could be determined by the lenders’ internal credit models. Alongside these changes, Chancellor Rishi Sunak has warned banks against charging double-digit interest rates after the initial 12-month no-interest period. Additionally, the new Coronavirus Large Business Interruption Loan Scheme (CLBILS) can provide government guarantees of 80 percent. In a statement, British Business Bank chief executive Keith Morgan said: “We have seen an incredible demand for CBILS since it launched, so opening up access to the scheme to even more smaller businesses across the UK will enable lenders to expand their support, deploying vital funding where it is most needed.” CBILS remains closed to banks, insurers and reinsures, public-sector bodies, state-funded primary and secondary schools, and grant-funded higher education establishments.
You May Also Like