Government Support Update Summary: COVID-19 July 2020

The CBILs haven’t panned out as the Government had hoped with banks simply rejecting the majority of applications. This has led to the Chancellor announcing a new scheme last night for small to medium-sized businesses.

 Eligibility criteria for a business that:

  • Is based in the UK
  • Has been negatively affected by coronavirus
  • Was not an ‘undertaking in difficulty’ on 31 December 2019

This will provide loans of £2,000 up to £50,000.

The government will pay the interest on the loans for the first 12 months. No repayments will be due for the first 12 months.

The scheme will provide lenders with a 100% government guarantee.

It is to be available from 4 May through a simple online application form with no forward looking test or criteria for lending.