The Coronavirus Business Interruption Loan Scheme (CBILS) is set to be revamped amid strong criticism. The changes are being put in place after banks have been accused of taking advantage of the crisis.
After receiving over 130,000 applications to the Treasury, fewer than 1,000 had been approved by banks. The Treasury has been sparked into action by reports that in the ten days since the scheme was launched, business owners are being denied loans pr forced to use other standard SME loan products.
The move will aim to speed up decision-making processes from lenders, enabling them to channel loans more quickly. The changes will also mean that businesses will not be limited to those that have been refused a loan on commercial terms.
Help for Larger firms with a turnover of up to £500m
Further changes are to be put into place to help larger firms with a turnover of up to £500m.
The updated scheme will look to offer loans of up to £25m to firms with a turnover of between £45m and £500m.
Banks will no longer be able to ask owners to guarantee loans against their personal property or savings when borrowing up to £250,000.