23rd September update: It is now being reported that the government will not extend these deadlines as expected, and the announcement that was expected on Wednesday (23rd September) has now been delayed.
However, more government support is expected to be announced soon, and this package of support measures is likely to include both an extension to these loan scheme deadlines and more specific measures to assist businesses and individuals struggling with reduced amounts of work.
As fears of a second wave of coronavirus grow, the government is set to announce an extension to its flagship COVID-19 business loans scheme, in order to further support businesses that could be affected by further restrictions or, potentially, even another national lockdown.
This piece will explain which schemes are affected, and exactly what has changed.
Which business loan schemes are going to be extended?
While, at the time of writing, the precise details of the extension have not been announced, according to reports in the Guardian and Financial Times, the deadline for all three business loan schemes targeted at SMEs will be extended.
- The Coronavirus Bounce Back Loan Scheme (BBLS) – This gives small businesses loans of up to £50,000, with no interest charged for the first year
- The Coronavirus Business Interruption Loan Scheme (CBILS) – This gives businesses loans of up to £5m, with no interest charged for the first year
- The Coronavirus Future Fund – This provides convertible loans of between £125,000 and £5m to “innovative” UK businesses
The previous BBLS deadline was 5 November 2020, while the other two schemes were set to close for applications at the end of September 2020.
Now, all three schemes will be open for applications until 30 November 2020.
How do I apply for a coronavirus business support loan?
The precise application process for a coronavirus business support loan depends on which loan you’re applying for, but all the relevant information and application links can be found via the government’s financial support for businesses during coronavirus page.
Key points for your small business
- The deadline for the bounce back, coronavirus business interruption and future fund loan schemes is set to be extended to 30 November 2020.
- Eligible businesses should apply via gov.uk
