Rishi Sunak had announced he would further extend the UK-wide programme of business support loans.
The window for submitting applications for three of the coronavirus business interruption loan schemes, and the Future Fund, has been extended to 31 January 2021. The schemes are the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) and the Bounce Back Loan Scheme (BBLS).
It was also announced that eligible businesses will be able to “top up“ existing BBLS should they need additional finance. This means that any firm who had previously taken a BBLS loan, but had borrowed less than they were entitled to can “top up” their existing loan to the maximum amount. Any “top up” must be requested by 31 January 2021.
It has separately been announced that new applications to participate in the Covid Corporate Financing Facility (CCFF) will now be accepted until 31 December 2020.
Andrew Dodds, a partner in the banking and finance team at Stevens & Bolton LLP, comments:
“This further extension is clearly the right call given the worsening COVID-19 situation. Many businesses have been battling on in terrible economic conditions and the second lock-down has been very challenging indeed for them. We are continuing to see a steady take-up of loans under the schemes and it makes sense to continue such support measures at this time”.