The Government could be set to provide a 100% guarantee on loans advanced through the Coronavirus Business Interruption Loan Scheme (CBILS). Small and medium-sized firms have been able to apply for interest-free loans of up to £25,000 since the scheme opened on 2 April 2020.
But figures show only 16,624 out of more than 36,000 applications had been successful so far. More than half of those loans successful applications had been approved in the eight days between 14 April and 22 April 2020, and over £2.8 billion of lending has been provided so far.
However, Afford Bond Director, Paul Edwards, said: “the statistics show that lenders rejected most SMEs and further tweaks to the scheme are under consideration”.
The key issue surrounds eligibility for the scheme, with around one million of the smallest firms in the UK – including shops and pubs – being excluded. The Government is expected to clarify how small a business needs to be to qualify for a loan for which the lender gets a 100% guarantee. If you need further help with an application to your lender, Afford Bond Chartered Accountants remain open and can help – please use the Contact Us form on our website at www.affordbond.com