Responding to reports that the Treasury is set to increase its guarantees on Coronavirus Business Interruption Loans (CBILS) with values up to £25,000 from 80% to 100%, Federation of Small Businesses (FSB) National Chairman Mike Cherry said:
"The average value of a CBILS loan currently stands at more than £170,000. The vast majority of small firms - more than 95 per cent of which are micro businesses or sole traders - are not seeking loans of anywhere near that size.
"It's good to hear that the Treasury is set to embrace our recommendation to provide 100% guarantees on loans with values up to £25,000. Doing so will help to get far more cash to far more of the firms that need it - businesses that have had to pay March's payroll and ongoing overheads with no revenue coming in.
"This is only one piece of the puzzle, however. A lot of banks need to make back office adjustments to ensure that they can issue commercial loans of this size, as they are subject to the terms of the Consumer Credit Act. They must do so swiftly if this change to the CBILS terms is to have a meaningful impact."
Notes to Editors
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