Chancellor Rishi Sunak is set to announce an overhaul to the coronavirus business interruption loan scheme

Chancellor Rishi Sunak is reportedly set to announce an overhaul to the coronavirus business interruption loan scheme that will allow businesses better access to emergency loan finding. It has been widely reported that the current structure of loan schemes is not working as expected with banks pushing normal business loans, high interest rates and personal guarantees rather than a Government backed rescue loan to assist small businesses in need.

The Chancellor and members of the Treasury have been in talks with major lenders to remove the requirement of banks having to asses whether small and medium sized enterprises are eligible for other funding options. This in turn should speed up the access for businesses to the Government backed rescue loans.

Hopefully there will be an announcement on this later this week. If you are currently considering a loan to assist your business you may want to delay your application until further announcements are made.