Changes to state aid rules as a result of UK Government and industry lobbying mean that more small businesses can now benefit from loans of up to £5m under the Coronavirus Business Interruption Loan Scheme (CBILS).
Previously, businesses which were classed as ‘undertakings in difficulty’ were unable to access CBILS because of EU rules. From today, businesses in this category and which have fewer than 50 employees and a turnover of less than £9 million can apply to CBILS.
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.
The UK Government and industry groups have lobbied to relax the restrictive rules in the European Temporary State Aid Framework to make sure that small businesses who are not insolvent or receiving rescue aid can benefit, enabling them to bounce back and kickstart our economy.
Small business minister, Paul Scully, 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.
“Small businesses will play a vital role as we seek to recover our way of life and get the economy moving again, and it is essential we continue to support them through this difficult period.”