In the latest budget announcement, Chancellor Rishi Sunak confirmed that the Bounce Back and CBILS loan schemes will indeed finish on March 31st. These schemes are to be replaced by a new ‘recovery loan scheme’ until the end of the year.
The new replacement recovery program is light in detail at this stage but is hoping to wean businesses off-state support. What we do know is that the government will continue to guarantee facilities at 80% for lenders, and the loans will be for businesses of all sizes, from £25k to £10m. The big difference at this stage is that the government WILL NOT be paying the first year’s fees.
Small businesses have so far borrowed almost £73 billion in the Bounce Back and CBILS loan schemes. While these very popular schemes have now been pulled, businesses have until March 31st to apply for loans under the emergency scheme. This is, therefore, the last opportunity to raise funds to kickstart your recovery from the pandemic, which is free for 12 months.
As a reminder – you can take multiple CBILS loans, there are no personal guarantees up to £250,000, and the government pays all of the fees in the first 12 months of the facility. There are nearly 100 accredited lenders and we are on the accredited panel for the vast majority. We answer your FAQ’s here
Other COVID-19 support measures are set to continue until at least the end of June – including business rates and VAT relief, the furlough job support scheme, the self-employed support scheme, and the stamp duty holiday. You can keep track of the budget live on the BBC here
