The Chancellor, Rishi Sunak, has announced a major overhaul of this emergency small business loan scheme, amidst reports of implementation difficulties at Banks and low take-up numbers with only 1,000 businesses agreeing on funding from 130,000 inquiries.
Rules governing this scheme have been relaxed allowing Banks to process loans as quickly as possible. Personal guarantees will not be requested for any borrowings of under £250,000. Most high street banks were following this anyway but now the Government is forcing all lenders to act.
The Government has also removed a requirement for businesses to demonstrate that they have no other means of accessing funding in an attempt to widen the scheme.
This is likely to result in bank’s receiving many more applications and PBC advice to clients considering this scheme is to engage with your bank as soon as possible and prepare as well as you can with up to date accounts, management information, cash flow forecasts etc. Please remember that these are loans that will need to be paid back in due course.
In addition please check RBKC website for a comprehensive summary of all other support initiatives.
As ever, PBC Business Advisers stand ready to assist clients with guidance as required.
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