*Please note, this is a "Questions & Answers" section. For more information about the Coronavirus Business Interruption Loan Scheme, please visit the 'COVID-19: Advice & Guidance' page on my website.
Who does this measure help?
- This measure is targeted towards SMEs. All viable UK-based businesses with a turnover of less than £45m will be eligible to apply for a loan.
- The Government welcomes the statement by UK Finance on behalf of the sector which announced that banks, building societies and credit card providers are committed to supporting their business customers in continuing to trade, and would encourage businesses to speak to their lender if they need finance.
What about firms which are too big for the CBILS but too small for the CFFS?
- The Government is aware that not all important companies are eligible for these schemes.
- The Government is working at pace to ensure that firms which play an important role in the UK’s long-term economic prosperity can secure access to finance.
- Companies in need of financing should talk to their lenders in the first instance.
Do these include personal guarantees which banks/lenders are demanding?
- A lender is not allowed to take a personal guarantee against a borrower's home (principle residence) under the Business Interruption Loan Scheme.
- The Chancellor, Bank of England Governor and head of the Financial Conduct Authority wrote to the CEOs of the major banks yesterday to emphasise that lenders must pass through government support to businesses and individuals.
- The Bank of England and the FCA will be monitoring the situation closely and will be in regular contact to discuss developments and issues emerging.
Some loans are not being paid because of a requirement that Covid-19 must be on the premises?
- This measure is targeted towards SMEs whose viability has been compromised by the outbreak of COVID-19. The scheme is not designed for businesses who remain able to borrow on normal commercial terms.
- Some SMEs will be impacted by COVID-19 to a lesser extent, and are still able to access finance from their lender at commercial rates.