- 4th August 2020
- Posted by: Suzy Hill
- Category: Personal Tax, COVID-19 NEWS, Business News
More firms to benefit from CBILS following changes to loan rules
Changes to state aid rules mean that more small businesses can benefit from the government’s Coronavirus Business Interruption Loan Scheme (CBILS).
As a result of EU rules, previously small firms in the ‘undertakings in difficulty’ category were unable to make use of the CBILS. From 30 July businesses in undertakings in difficulty with a turnover of less than £9 million and fewer than 50 employees can apply for a loan under the CBILS.
Commenting on the issue, John Glen, Economic Secretary to the Treasury, said: ‘Our loan schemes have been a key part in supporting businesses, enabling them to bounce back as we kick start the economy.’
Meanwhile, Chris Wilford, Head of Financial Services Policy at the Confederation of British Industry (CBI), said: ‘These eligibility hurdles have been a real stumbling block for many firms across the UK throughout the crisis.
‘These were put in place to avoid governments bailing out failing companies, but those rules were established in normal times. They have had a real impact on the ability of some high-growth firms and those with more complex structures being able to access the loan schemes.’