2,220 businesses in Central Devon have received loans to help them combat the devastating impact of the coronavirus pandemic. New figures from the British Business Bank show 91 businesses have benefited from the Coronavirus Business Interruption Loan Scheme (CBILS) and 2,129 from the Bounce Back Loan Scheme (BBLS).
CBILS are loans of up to £5 million, interest free for 12 months, to small businesses. The scheme was initially limited to those unable to secure regular commercial financing, but this has been extended to all small businesses affected by Coronavirus. The Government has banned lenders from requesting personal guarantees for loans under £250,000.
BBLS is a 100% government-backed loan scheme that enables small businesses to borrow up to £50,000 and access the cash within days. The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance very quickly. The Government will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.
Central Devon MP Mel Stride, who serves as Chair of the influential House of Commons Treasury Select Committee, said:
“I know what it is like to dedicate years to developing a business and making it successful so I have great sympathy for every small business owner impacted by the pandemic. It is a good sign though that businesses in Central Devon are taking up the government’s help during this extraordinary difficult time. If any business needs more information I would urge them to contact me.”