The Chancellor, Rishi Sunak, is expected to announce the extension of the Government’s Coronavirus Business Interruption Loan Scheme (CBILS) until the end of November.

The move is set to follow the announcement of further measures by the Prime Minister, which include updated advice on working from home, new rules on face masks in hospitality and retail settings and further details on fines for the breach of any rules.

Concerns have arisen about the rise of coronavirus infections and the effect it could have on the UK economy, which has resulted in the Chancellor considering the extension of the CBILS.

Four state-backed lending programmes will be put into place, until the end of November, to ensure that businesses are receiving support.

Since March, nearly £53 billion Government-backed loans have been granted to businesses. One of the loans, which offers 100 per cent Government backing, was set to expire at the beginning of November.

The other three, which enable 80 per cent Treasury backing on loans made by commercial banks, are set to close to new applications at the end of September.

All of these are now set to be extended till the end of November and banks will be permitted to process loans until the end of 2020.

60,000 firms have taken advantage of the CBILS, totalling a cost of £13.7 billion, with some firms using loans of up to £5 million.

Commercial banks can lend out the money and recover a maximum of 80 per cent of the value of the loan from the Government if a firm fails to fulfil their obligation.

The Coronavirus Future Fund, which enables loans for fast-growing start-up companies plus matched-funding from private investors, will also be extended.

For help and advice, contact our expert team today.

The following two tabs change content below.
Avatar
Glazers is a well-established and progressive firm of accountants based in North West London.