Responding to the Chancellor’s announcement yesterday of a new 100% Government backed loan for small businesses which will be available for next Monday, Tania Bowers, Legal Counsel and Head of Public Affairs said:
“This is very good news for a number of our smaller members who felt that they had fallen between two stools. On the one hand they had no prospect of applying for a CBIL loan and on the other hand, they could not take advantage of the furlough scheme as they were owner directors paying themselves through dividends. This new loan, which allows firms to apply for up to 25% of their turnover capped at £50,000, will give a rapid cash injection in a matter of days and there will be no repayments due for the first 12 months. The fact that there is no post-covid business viability test, and that Government will give lenders a 100% guarantee and pay any fees and interest for the first 12 months will be welcome news to many of our smaller members who may be struggling with their business continuity planning.”
