25 Sep 2020
Changes to the Coronavirus Loan Schemes
On 24 September 2020, the Chancellor announced a series of new support measures available to businesses with the furlough scheme coming to an end. This included some changes to the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme.
Mr Sunak announced what he is calling the ‘pay as you grow’ scheme for businesses who have already received a loan via either of these schemes. The Bounce Back Loan Scheme will be extended from repayment terms of six years to ten years. This extension will result in the monthly repayments reducing by almost half when they become due.
Loans under the CBILS will also be able to be extended from the current maximum of six years to ten years.
Businesses who are struggling can choose to make interest-only payments for six months and those ‘in real trouble’ can apply to suspend repayments altogether for six months.
The deadline for new applications has been extended until the end of November 2020 with the qualifying criteria remaining unchanged. If you haven’t already taken out a Coronavirus Business Loan you can see the eligibility criteria here:
The Chancellor also announced that there would be a new loan scheme launching in January 2021. Details of this scheme will follow in due course.
To discuss this further, please contact your usual MHA Monahans representatives or contact your local office.