Coronavirus Business Interruption Loan Scheme Update and New Support for Smaller Businesses
Pamela Muir and Chris Allan at Thorntons, highlight the latest updates and changes.
In response to criticism from business that the administration of the CBILS scheme has been too slow to meet their urgent need for funding, and although there have been over 20,000 loans made already, the Chancellor has announced a revision of the process, and introduced the Bounce Back Loan Scheme for smaller businesses, which will allow loans funds to be paid out within “days” from application.
Who can apply?
Small Businesses can apply. What that actually means is slightly unclear as yet, but from the commentary so far, it would seem that it is intended to support; small companies, sole traders, and micro-businesses, with a maximum turnover of £200,000. We expect further guidance as the scheme goes live.
When and where can I apply?
The scheme will go live on 4th May and applications will be through a standardised, simplified, online application form. Application should in the first instance be to any of the accredited lenders. We assume that it will be the same lenders already accredited to provide CBILS, and if your current Bank is accredited, you should start with them.
How much can I borrow?
Businesses will be able to borrow between £2,000 and £50,000 and access the cash within a matter of days from application. It is limited to 25% turnover, with the cap of £50,000.
The loans will be interest free for the first 12 months, but can be for longer than a year if needed. The applicable interest rate after the first 12 months has not yet been disclosed, but the Chancellor has stated that it will be “low and standardised”.
How quickly will the loans be paid to me?
The government have said it will be “days” from application to payment.
Responding to significant criticism that the CBILS scheme has been too slow, and that accredited lenders are refusing some loans, the BBLS will benefit from the government providing lenders with a 100% guarantee for the loan, and underwriting any costs and expenses in the first 12 months. This is designed to avoid any delay with lenders assessing viability of your business, in fact, it appears as if viability criteria has been varied so that all that needs to be assessed it whether or not your business was viable before the corona virus pandemic.
The BBLS guarantee is to the lender and not to your business. Your business will always remain 100% liable for repayment of the loan.
In this section
- Spain Quarantine Rules: An employment Law Insight
- General Guidelines
- UK government: Government launches £200m funding for sustainable COVID-19 Business Recovery, 27 June 2020
- Scottish Government: Lockdown begins to ease in Phase 1, 28 May 2020
- Scottish Government: COVID-19 Budget Revision, 27 May 2020
- Scottish Government: Sector Guidance for Easing Lockdown, 26 May 2020
- Scottish Government: COVID-19 Funding Plea, 23 May 2020
- Scottish Government: Expansion of COVID-19 Testing, 18 May 2020
- Data Protection and Privacy During the Coronavirus Pandemic
- Scottish Government: Second Coronavirus (Scotland) Bill, 11 May 2020
- Scottish Government: SME Support Doubles to £90 million, 8 May 2020
- Redundancy during Coronavirus Part 4: How do I calculate redundancy payments?
- Redundancy during Coronavirus: Part 3: How do I consult with employees who are risk of redundancy?
- Scottish Government: Emergency Loan Fund for SME House Builders, 7 May 2020
- UK Government: Business Rates Revaluation Postponed, 6 May 2020
- Scottish Government: New Powers over CAP, 5 May 2020
- Scottish Government: Preparing for Economic Recovery, 5 May 2020
- Uk Government: Self Employed Invited to Get Ready to Make Their Claims for COVID-19 Support, 4 May 2020
- UK Governement: Funding five new testing facilities in Scotland, including Perth, 29 April 2020
- Scottish Government: Rapid Coronavirus Research. More than 50 Scottish Studies to Tackle Virus and its Impact, 28 April 2020
- Scottish Government: Securing Vital COVID-19 Supplies for Scotland, 24 April 2020
- Coronavirus Business Interruption Loan Scheme Update and New Support for Smaller Businesses
- Aberdein Considine: View the latest response to Coronavarius
- Redundancy During Coronavirus: Part 2: How Do I Select Employees for Redundancy? 23 April 2020
- Scottish Government: Lifeline Support for Business Confirmed, 21 April 2020
- Scottish Government: Universal Credit. People Being Urged To Access All Support, 21 April 2020
- Scottish Government: COVID-19 Impact on Scotland's Economy, 21 April 2020
- Redundancy During Coronavirus: Part 1: How Do I Deal With Collective Consultation?, 21 April 2020
- Scottish Government: Call for Accelerated Business Support, 21 April 2020
- UK Government: Billion £ Support Package for Innovative Firms hit by COVID-19, 20 April 2020
- Scottish Government: Extend Brexit Transition during COVID-19 crisis, 20 April 2020
- Scottish Government: Advisory Group on Economic Recovery, 17 April 2020
- Scottish Government: Thousands of Businesses Benefit from Support Grants, 17 April 2020
- UK Government: Chancellor extends furlough scheme to end of June, 17 April 2020
- What Coronavirus Act means for Commerical Landlords
- UK Government: Universal Credit claimants to verify identity through Government Gateway, 16 April 2020
- UK Government: Councils given greater financial relief against cash flow pressures, 16 April 2020
- Scottish Government: Additional Support for Business, including additional £100m for Self-Employed, 15 April 2020
- UK Government: Magnox donates 66,000 items of PPE to support coronavirus response, 15 April 2020
- UK Government: Furlough scheme cut-off date extended to 19 March, 15 April 2020
- UK Government: Job Retention Scheme, 15 April 2020
- Scottish Government: New Mental Health Support, 14 April 2020
- UK Government Response: Commission on Human Medicines: Advice on Ibuprofen and Coronavirus, 14 April 2020
- Scottish Government: National Helpline to Support Those at High COVID-19 Risk, 13 April 2020
- UK Government: Scottish Secretary Welcomes Additional Money to Help Scotland Tackle Coronavirus, 13 April 2020
- Scottish Government: Transport Community to Help COVID-19 Sufferers, 12 April 2020
- Scottish Government: New Measures to Protect Business Tenants, 10 April 2020.
- Scottish Chamber of Commerce: COVID-19 Update
- Scottish Government: Skills matching service to help rural business. 09.04.20
- Scottish Government: Additional COVID-19 Daily Data Published 08.04.20
- UK Government: Coronavirus (COVID-19): letter to the manufacturing sector 08.04.20
- UK Government: Letter from the Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma, to those working in retail. 08.04.20
- Scottish Business Community calls for clarity, consistency and cooperation in COVID-19 response 3 April 2020
- Help find new ways too ease global disruption: apply for funding. 3 April 2020
- UK Export Finance to offer export insurance in all major markets in response to Coronavirus (COVID-19). 3 April 2020
- Chancellor strengthens support on offer for business as first government-backed loans reach firms in need
- Scottish Business Community calls for clarity, consistency and cooperation in COVID-19 response. 3 April 2020
- Scottish Govenment Help with non-domestic rates in Scotland during coronavirus (COVID-19) Last updated: 2 April 2020
- Coronavirus: Rishi Sunak announcement on UK government aid for self-employed
- UK Government Self-employment and Universal Credit
- Scottish Government Coronavirus (COVID-19): business and social distancing guidance. Published 25.03.20
- Scottish Government Coronavirus (COVID-19): guidance for businesses on offering support. Published 24 March 2020
- 20th March Update
- SCC & Scottish Government Update 18th March
- SCC & Scottish Government Update 17th March
- PKC Coronavirus (Covid-19) Guidance
- UK Government Coronavirus (Covid-19) Link
- Scottish Government Corona Virus (Covid-19) Link
- NEW Find Business Support in response to Coronavirus - from Scottish Enterprise Source
- Coronavirus: £320m rescue package for business from Scottish government - BBC Sourced
- Guidance & Quick Links
- Helpline announed by Fiona Hyslop, Economy Secretary - Sunday 15th March 2020