Chancellor considers extending coronavirus business support

Chancellor Rishi Sunak is believed to be considering extending the Treasury’s coronavirus loan schemes to help businesses through what looks set to be a difficult winter.

Mr Sunak is understood to be looking at extending some key business loan schemes following a rise in cases of coronavirus, according to the Financial Times.

It is thought that one of these schemes could be the Bounce Back Loan scheme, which offers loans of up to £50,000 to small and medium-sized companies, including farming businesses.

See also: £50,000 Bounce Back loan announced

Currently the last date to apply for a loan is 4 November 2020.

Another of the schemes for which the agricultural sector is eligible and is thought to be under consideration is the Coronavirus Business Interruption Loan Scheme (CBILS), which backs loans of up to £5m for companies that can show their finances have been adversely affected by the Covid-19 crisis.

This scheme is currently scheduled to close for applications at the end of the month.

Plans are being drawn up to extend the application window for four schemes to the end of November, with banks given until the end of the year to process loans, the newspaper said.

The other two schemes understood to be up for an extension are targeted at corporate businesses – the Coronavirus Large Business Interruption Scheme and the Future Fund.

Mr Sunak is also under pressure to consider extending the furlough scheme when it ends on 31 October.

Loan schemes summary

Coronavirus Business Interruption Loan Scheme
The scheme provides:

  • Loan funding of between £50,000 and £5m for UK businesses with an annual turnover of up to £45m
  • 12 months’ interest and fees covered by the government
  • 12-month repayment holiday if needed
  • Loan term of up to six years.

Bounce Back Loan Scheme
The scheme provides:

  • Loan funding of between £2,000 and £50,000, up to a maximum of 25% of annual turnover
  • 12 months’ interest and fees are covered by the government
  • 12-month repayment holiday is available
  • Loan term is up to six years

More information on CBILS and the Bounce Back Loan is available on Gov.uk.

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