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.