Following widespread criticisms from many SMEs the Government has announced changes to its emergency loan scheme.
The Coronavirus Business Interruption Loan Scheme (CBILS) is intended to provide temporary financial support to help small and medium sized businesses through the Coronavirus crisis. This includes print firms, which can remain open for business after the The IPIA and BAPC met with The Department for Business, Energy, and Industrial Strategy (BEIS).
Under the changes announced by the Treasury, business owners looking to borrow less than £250,000 will no longer have to offer up personal guarantees, nor will they have to have already tried and failed to get an ordinary commercial loan.
The Chancellor will also be speaking to banks accused of profiting from the crisis, though as yet he has not put in place limits on the interest rates that banks can charge on the loans.
The changes came after many companies were either reluctant or unable to take advantage of the scheme. The Treasury has admitted that fewer than 1000 loans had been approved out of more than 130,000 enquiries and recent estimates have suggested that one fifth of UK businesses could run out of cash within the month.
