UK extends COVID-19 business interruption loan scheme

06 Apr '20

1 min read

Pic: UKFT

The UK Fashion & Textile Association (UKFT) has announced that the government is extending the Coronavirus Business Interruption Loan Scheme (CBIL), so that all viable small businesses affected by COVID-19 will be eligible, not just those unable to secure regular commercial financing. The UKFT is the leading network for UK fashion and textile companies.

The government has also made the changes to CBILS. Lenders cannot request personal guarantees for loans under £250,000. For loans over £250,000, personal guarantees will be limited to 20 per cent of any amount outstanding after any other recoveries from business assets. Banks cannot ask business owners to use their house as collateral. Banks are to make operational changes to the scheme to speed up lending. These changes will also apply to finance already offered under the scheme, UKFT said in a press release.

In addition, companies with a turnover of between £45 million and £500 million will now be able to access loans of up to £25 million. CBILS will be offered at commercial interest rates but the government will continue to cover the first twelve months of interest and fees.

Fibre2Fashion News Desk (GK)

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