More firms could benefit from the Government’s coronavirus loan schemes after they were extended ahead of the second national lockdown.
It was confirmed this week that the Bounce Back Loan Scheme (BBLS), Coronavirus Business Interruption Loan Scheme (CBILS), and Coronavirus Large Business Interruption Loan Scheme (CLBILS), as well as the Future Fund, will be extended until at least the end of January 2021.
As the schemes had been set to close on 30 November 2020, this will give businesses “at least two extra months” to make loan applications.
As part of these changes, businesses who have borrowed less than the maximum loan value under the BBLS can choose to “top up” their existing loan. According to the Government, businesses can make use of this option only once, with providers accepting applications from next week.
Commenting on the change, HM Treasury said: “We understand that some businesses didn’t anticipate the disruption to their business from the pandemic would go on for this long; this will ensure that they are able to benefit from the loan scheme as intended.”
Businesses forced to close as a result of national or local restrictions throughout November will also be entitled to receive up to £3,000 in grant funding every four weeks.
“Nobody wants to have to tackle the problems the COVID19 Pandemic have thrown our way, but the measures the Government has announced do go some way to help viable businesses continue for long enough to enjoy a form of new normality whenever that arrives” commented Rufus Ballaster, Senior Partner of Carter Lemon Camerons LLP.
For support and advice on any related matters, please get in touch with our expert team today.