A change to the banks’ lending rules means small firms that have been rejected for support loans are now able to re-apply.
Small companies with fewer than 50 staff and less than £9m in annual turnover will no longer be considered “undertakings in difficulty” under EU state aid rules amid the coronavirus crisis.
Before the recent changes the rules meant that any small companies classed as being in financial difficulty on 31 December 2019 would not be eligible for the bank loans. But the British Business Bank (BBB) has now changed the CBILS scheme to ensure SMEs will not miss out on cash that could help them survive.
From 30 July “lenders may now be able to offer CBILS to businesses who had previously been unable to access CBILS”, the BBB said.
Those eligible under the temporary rule change must not be insolvent or have already received rescue or restructuring aid.
More than 50,000 SMEs have had their loan applications rejected by British banks.