The Government has announced that because of changes to state aid rules, more small businesses can now benefit from loans of up to £5 million under the Coronavirus Business Interruption Loan Scheme (CBILS). Previously, businesses that were classed as “undertakings in difficulty” were unable to access CBILS because of state aid rules. Businesses in this category and that have fewer than 50 employees and a turnover of less than £9 million can now apply to CBILS. Undertakings in difficulty are usually businesses with high levels of debt and accumulated losses.
The Economic Secretary to the Treasury and the Small Business Minister have written to accredited lenders setting out their expectation that these changes will be implemented to ensure more businesses are receiving support. To read the Government’s announcement in full, click here.