Chancellor Sunak ‘Planning to Overhaul Business Interruption Loan Scheme’

Written by: Keith Tully

Published: 2nd April 2020

Coronavirus BusinessChancellor of the exchequer Rishi Sunak is planning to overhaul the recently introduced Coronavirus Business Interruption Loan Scheme, with evidence emerging that the associated funds aren’t always reaching the companies that desperately need them.

The scheme was set up last month to bolster the finances of SMEs who’ve been hit badly by the coronavirus crisis but many thousands of small and medium-sized businesses are nonetheless being pushed close to the brink of insolvency.

According to Sky News, the chancellor is now looking at ways redesign the loan scheme to ensure it gets better at delivering loans to where they’re needed most.

A key part of the problem has been that banks were given responsibility for deciding whether SMEs should be granted access to government-backed emergency loans, with the effect being that too few are getting the necessary approvals.

Reports suggest that Mr Sunak will be looking for ways to speed up assessment processes and make it more likely that companies who apply for loans can access the cash they need.

Sky News has said that the chancellor has been in discussions with representatives of the UK’s main high street banks to establish some revised rules around how the emergency loan scheme will function.

The goal is reportedly to create a situation in which any viable business with a turnover worth up to £45 million can get access to loans worth up to £5 million on an interest-free and fee-free basis for the first 12 months.

The government is also understood to want banks to commit publicly to only modestly increasing their interest rates on the emergency loans once the first year has passed.

A notable challenge for banks as they work to play their part in distributing the government’s emergency loan funding is that so many of their branches across the country are currently closed or operating reduced opening hours.

Meanwhile, from the perspective of SMEs, the situation is increasingly perilous, with hundreds of thousands of businesses understood to be a matter of weeks away from collapse.

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY