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Business Interruption Loan

Eligibility Criteria

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Can anyone provide guidance about what is criteria for getting coronavirus business interruption loan which business has announced. 

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RLI
By lionofludesch
17th Mar 2020 17:46

Yes - the Chancellor.

We're all waiting for him with bated breath.

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By ireallyshouldknowthisbut
17th Mar 2020 18:22

Well given we are still waiting nearly week for anything concrete to come out of the budget announcement, Id suggest he is just announcing any old tosh and hoping for the best.

Even Trump is doing better.

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By GW
17th Mar 2020 18:37

The budget documents said last week that the draft legislation from the budget was going to be published on Thursday this week. Yesterday Matt Hancock said a Covid-19 emergency bill is going to be presented to Parliament on the same day. I expect the detail will be in one of these.

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By SXGuy
17th Mar 2020 18:37

Come on he literally announced it an hour ago. What do you expect anyone to know?

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By carnmores
17th Mar 2020 18:43

Loans are not enough grants are needed. i have to lay off 20 this weekend for a client in the hospitality sector what chance for those people ? every help that can be give to SME should be given , including immediate deferring of empoyers NIC & auto enrolment contributions

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By kenny achampong
17th Mar 2020 18:48

£330 billion in cheap loans to enable employers to keep staff on. What on earth is the use of that ? The businesses I'm dealing with will be going further into debt with no income at all. And no idea how long it could last for. And their last 'cheap loans' (student) are 6.5%. And so the government will be making money from it, and saving the universal credit pay outs. Same as mortgage interest holidays - it just decreases potential universal credit pay outs.

I'd like to hear some commitment to making sure the welfare system will be able to function because I reckon there will be millions more claiming, especially from the start of April. But presumably HMRC staff will be discouraged from working, or not working at all maybe. It's going to be omni-shambles!

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Replying to kenny achampong:
RLI
By lionofludesch
17th Mar 2020 18:58

Quote:

£330 billion in cheap loans to enable employers to keep staff on. What on earth is the use of that ? The businesses I'm dealing with will be going further into debt with no income at all. And no idea how long it could last for. And their last 'cheap loans' (student) are 6.5%. And so the government will be making money from it, and saving the universal credit pay outs. Same as mortgage interest holidays - it just decreases potential universal credit pay outs.

I'd like to hear some commitment to making sure the welfare system will be able to function because I reckon there will be millions more claiming, especially from the start of April. But presumably HMRC staff will be discouraged from working, or not working at all maybe. It's going to be omni-shambles!

Cheap loans ? Repayable within a year ?

A business will need to be struck only a glancing blow for that to help.

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By John Stone
18th Mar 2020 08:55

Surely borrowing to pay wages with no customers for the foreseeable future is close to a definition of madness.

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By Duggimon
18th Mar 2020 10:08

The announcement I saw said the loans would be administered via the banks, that's far from concrete but would make sense, I don't imagine the government has the resources to set up a new agency to deal with them.

As to whether it's a good or sensible idea, I concur with my learned friends above.

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By CazzyT
18th Mar 2020 10:26

This is what The British Bank say

IMPORTANT UPDATE: At Budget 2020, the Chancellor announced that a ‘Coronavirus Business Interruption Loan Scheme’ (CBILS) will temporarily replace the Enterprise Finance Guarantee (EFG), becoming available over the coming weeks.
It will operate in a similar way to EFG and be provided by the British Business Bank, but will offer more attractive terms for both businesses and lenders, with the aim of supporting the continued provision of finance to UK businesses during the Covid-19 outbreak.
As well as loans, there are many other types of finance supported by the programme, depending on the provider. You can find out what type of finance they provide on our partner page.

Disclaimer: We are in the process of defining and agreeing the scheme’s details, specifications and eligibility and therefore information is subject to change. We will be updating our webpages to reflect any potential changes to CBILS as and when they are published.

WEBPAGES WILL BE UPDATED OVER THE COMING DAYS TO PROVIDE MORE INFORMATION.
The British Business Bank’s CBILS facilitates business finance to smaller businesses that are viable but unable to obtain finance due to having insufficient security to meet the lender’s normal requirements. The borrower always remains 100% liable for the debt.
In this situation, CBILS provides the lender with a government-backed 80% guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’.

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Replying to CazzyT:
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By [email protected]
18th Mar 2020 17:32

Just spoke with my business banker at Santander. he told me that updates will be on 23rd March 2020.

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By wdaccaat
25th Mar 2020 12:54

Hi Guys

Is anyone aware if there are any updates to businesses criteria, or how to apply for the loan?

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