The Government has announced that it will be extending the reach of the Coronavirus Business Interruption Loan Scheme (CBILS) to cover many small firms who were not originally eligible.
When this scheme was first launched after the pandemic hit the UK, those firms that were classified as ‘undertakings in difficulty’ lost out on the support loans. The Government stated that the reason for this was EU regulations, but now companies that fall under that umbrella will be allowed to apply for the loans, as long as they have turnovers below £9 million and less than 50 people working for them.
The maximum companies can apply for under this scheme is £5 million, so this news will potentially make a significant difference for many smaller firms that are struggling financially in the wake of the pandemic.
The term ‘undertakings in difficulty’ generally refers to firms that have sizeable accumulated losses and debts, and speaking to a business accountant in Goole or any other area can be another option for them to find a way out of their situation.
According to ABTA Magazine, Paul Scully, the Small Business Minister, said:
“We have stood by business throughout this crisis, and today’s announcement will mean that even more small firms will be able to access much-needed financial support.”
He went on to say that businesses of this sort were absolutely essential to the economy in the UK and that this meant the Government would do everything necessary to help them survive.