Chancellor announces changes to coronavirus emergency loan scheme

Business leaders today welcomed Government changes to the coronavirus emergency loan scheme.

Friday, 3rd April 2020, 10:56 am
Updated Friday, 3rd April 2020, 10:58 am
Rishi Sunak

Chancellor Rishi Sunak announced improvements following concerns over which businesses would be able to access the money, and problems in doing so.

The Government has extended the Coronavirus Business Interruption Loan Scheme (CBILS) so that all viable small businesses affected by COVID-19, and not just those unable to secure regular commercial financing, will now be eligible should they need finance to keep operating during this difficult time.

The government is also stopping lenders from requesting personal guarantees for loans under £250,000 and making operational changes to speed up lending approvals.

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The government will continue to cover the first twelve months of interest and fees.

Both the British Chambers of Commerce and the Federation of Small Businesses have welcomed the move and say they will closely monitor developments.