As of the 30th July 2020, many accredited lenders may now be able to offer funding to businesses that have previously been ineligible to access the coronavirus business interruption loan scheme.
Changes to CBILS undertaking in difficulty test opens up the initiative to more smaller businesses
Following the recent EU changes in State Aid Law relating to the ‘undertaking in difficulty’ test for businesses, the British Business Bank has amended its Coronavirus Business Interruption Loan Scheme.
The amendment means that smaller businesses with fewer than 50 employees and less than £9,000,000 in annual turnover and/or annual balance sheet will not be considered undertakings in difficulty unless they are (a) subject to collective insolvency procedure under national law, or (b) in receipt of rescue aid (which has not been repaid) or restructuring aid (and are still subject to a restructuring plan).
Smaller businesses with more than 50 employees or more than £9,000,000 in annual turnover and/or annual balance sheet will still be subject to the ‘Undertaking in Difficulty’ test as defined by the European Union.
This significant change to eligibility for the Coronavirus Business Interruption Loan Scheme opens up the gates for smaller businesses which may have been previously declined or unable to access CBILS through accredited lenders.
What does this mean for your business?
The change to the scheme does not mean that your business will automatically have access to the Coronavirus Business Interruption Loan Scheme, you will still need to prove that your business has been adversely affected by Covid-19 and meet your respective lenders criteria and credit checks.
Over 100 lenders are now accredited, by the British Business Bank, to provide funding through the CBILS. However, not all of them will still want to offer funding to business that do not meet their own risk model and lending criteria.
This is where The Funding Store could help, we have access to both CBILS accredited funders and alternative funders who have products available that have been tailored recently, with the effects of the current COVID19 pandemic on businesses, kept in mind.
This is great for you, and us, as it gives us both alternative options. The benefit of using The Funding Store is that we understand our panels’ lending criteria, allowing us to put together the strongest case possible for your business to obtain the funding that it needs.
So, if you are genuinely concerned about what alternative options are out there, then you have come to the right place, contact The Funding Store today on 01908 880420 or firstname.lastname@example.org, we are here to help.