- Published on 21 March 2020
As part of measures to compensate domestic businesses affected by coronavirus strategies, the UK government has fast-tracked its loan proposal for businesses.
As from Monday, March 23, British businesses can apply through the British Business Bank for a Coronvirus Business Interruption Loan Scheme (CBILS) facility with a "government-backed guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’" The first 12 months of interest payments will be covered by the UK Governmnt, but loans come with an underlined reminder that the "the borrower always remains 100% liable for the debt".
In addition to expediting the introduction of the scheme, which was announced on March 11 for introduction "over the coming weeks", the loan value has been bumped up from an originally-suggested maximum of £1.2m to a £5m sum.The full eligibility criteria will only be published on March 23, clarifying qualification for a range of financial products that covers term facilities, overdrafts, invoice finance facilities, and asset finance facilities. For more information, click here.
Strikingly, this UK Brexit government will still apply EU de minimis-State aid rules to a small number of excluded or restricted sectors.
Source: Briitsh Business Bank