The SME club has learnt that a U-turn in rules for lending on COVID-19 support loans means UK SMEs that had originally been rejected for coronavirus loans may now be eligible to receive the vital loans that could see the difference between them staying in business or having to shut down.
Small businesses in the UK that have less than 50 employees and annual turnover below £9m will no longer be considered “undertakings in difficulty” under EU rules amid the COVID-19 crisis.
The change in the loan lending law means that any small companies classed as being in financial difficulty on 31 December 2019 will now be eligible to apply for these bank loans.
Until now all UK banks had relied on this legislation to determine which UK SMEs they could grant these coronavirus loans to during the lockdown.
After much lobbying the British Business Bank (BBB) has now changed the CBILS scheme rules to ensure more UK SMEs will be able to apply and get loans that so many desperately need to help them survive.
"From 30 July UK Banks will now be able to offer CBILS to businesses who had previously been unable to access CBILS”, the BBB said.
Those SMES that are eligible under this temporary rule change cannot be insolvent already or have already received any COVID-19 rescue aid.