Source: HM Treasury
The Chancellor has, today, announced enhancements to the Coronavirus Business Interruption Loan Scheme (CBILS). To date, more than £90m of loans have been accessed by nearly 1,000 small businesses since its launch last week.
Extension of eligibility
From next week, all viable small businesses will be eligible to borrow under the CBILS, not just those which are unable to secure regular commercial financing.
No personal guarantees below £250,000
The Government is also stopping lenders from requesting personal guarantees for loans under £250,000.
Limit on personal guarantees above £250,000
For loans over £250,000, personal guarantees will be limited to just 20% of any amount outstanding on the CBILS lending after any other recoveries from business assets. Lenders were already prohibited from asking business owners to put their house on the line, but today’s changes will provide further reassurance regarding personal assets during this difficult time.