Coronavirus Business Interruption Loan Scheme
Following today’s Budget 2020, Shaw & Co welcome the Chancellors wide-ranging measures to help the UK cope with the effects of the Coronavirus. Regarding the SME sector, we especially welcome the Coronavirus Business Interruption Loan Scheme (CBILS) to cover 80% of banks’ lending emergency short term loans to SMEs of up to £1.2m.
Our corporate finance teams are working with our banking partners to clarify the details of the product, eligibility and process requirements. We will release further communications as we obtain further clarity.
We have seen similar features to the ones proposed by Rishi Sunak in other government guaranteed products. This includes Enterprise Finance Guarantee loans, which still leave banks with a portion of risk.
However, despite the emergency relief nature of the loans, the banks will still need customers to undergo an application process with its eligibility, documentational, process and other requirements.
We understand that this may be an onerous process, especially as the businesses likely to apply are the same SMEs who have been hit by Covid-19 related interruption and shortages of personnel resources.
Shaw & Co are committed to help SMEs with funding processes as much as we can. Please keep an eye on our social media channels for further updates over the coming days.