Last Thursday (30 July) it was announced that following changes to state aid rules, more small businesses are now eligible to apply for the Coronavirus Business Interruption Loans Scheme (CBILS).
Before the changes, businesses classed as 'undertakings in difficulty' were unable to access the scheme ('undertakings in difficulty' are usually businesses with high levels of debt and accumulated losses). However, now the changes have been implemented, businesses in this category with less than 50 employees and a turnover of less than £9 million can apply for the Government loans.
It has been pointed out on a number of occasions during the pandemic by Government officials such as Rishi Sunak and Alok Sharma, that small businesses are the backbone of the British economy. Hopefully this change to the CBILS initiative will allow more small businesses to survive and overcome the financial difficulty they have encountered in the past 5 months.
"Small businesses will play a vital role as we seek to recover our way of life and get the economy moving again, and it is essential we continue to support them through this difficult period."