Date24 Sep 2020
CategoryBanking & Finance
The Chancellor of the Exchequer has today extended the government’s three Coronavirus business interruption loan schemes and the Future Fund. The extension aligns all the end dates of the schemes to 30 November, ensuring that there is further support in place for those who may need it.
More businesses will now be able to benefit from the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS), the Bounce Back Loan Scheme (BBLS) and the Future Fund.
As the schemes were announced at different times, they previously had different closing dates, with each scheme originally open for applications for a period of six months – 30 September (CBILS and Future Fund), 20 October (CLBILS), and 4 November (Bounce Back Loan Scheme).
CBILS, alongside CLBILS, Bounce Back Loans and the Future Fund, are state-backed schemes introduced by Government to help businesses through the worst effects of the Coronavirus pandemic. More specifically, CBILS provides financial support for UK based SMEs, with a turnover of no more than £45 million per annum, which are experiencing lost revenue and cash-flow disruptions, resulting from the Coronavirus outbreak. To find out whether you can apply for CBILS, please refer to the gov.uk or the British Business Bank websites.
The Government has notified CBILS as a State aid under the European Commission’s new Temporary Framework for COVID-19. Due to this, any R&D claim submitted by a business will be affected if it has already received an interruption loan. If your business submits an R&D claim and has received a CBIL, we would strongly advise that you seek help, or refer to our insight which specifically relates to how the Coronavirus support packages affect an SME R&D tax claim.
Our in-house Banking and Finance team continue to actively help clients obtain the vital funds they need. If you have any questions or would like to discuss the financial support available for your business in further detail, please get in touch with a member of our Banking and Finance team or speak to your usual Azets contact.