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Lloyds won’t ask for personal guarantees regardless of loan amount
Chancellor of the Exchequer Rishi Sunak announced the CBILS amid the coronavirus pandemic and – to be eligible – businesses must be UK-based with an annual turnover of no more than £45m and have a borrowing proposal that, if it wasn’t for the current pandemic, would be considered viable by the lender, and for which, the lender believes the provision of finance will enable the business to trade out of any short to medium-term difficulty.
A spokesperson for Lloyds Bank Commercial Banking said: “We understand the challenges facing our customers at the moment and can confirm that, for the period of the Government CBILS, for businesses that need support due to the coronavirus outbreak, we will not seek personal guarantees for any new financing that we approve. This applies to both our normal banking lending and customers who are eligible for the CBILS.”
Committed sector
Criteria for Coronavirus Business Interruption Loan from British Business Bank:
Eligibility – the business must meet the eligibility criteria as set by the Government to be able to qualify and be able to apply.
Security – the lending is for businesses that do not have suitable security and would not be able to receive lending from their bank
Viability – the lending is for otherwise healthy businesses that are hit by short or medium-term problems caused by Covid-19 and where the lending will allow them to trade through this short or medium-term problem
This follows the announcement of businesses looking to borrow less than £250,000 under the CBILS will now not be asked for personal guarantees but operators are still having to jump through hoops to access the funds.
Bank trade body UK Finance CEO Stephen Jones said: “The banking and finance sector is committed and has the capacity to support viable businesses with their cash flow and investment needs.”
He went on to say firms are constantly keeping websites updated with the latest information, which can answer customer queries.
Immediate issue
Jones added: “For more detailed questions, there are a range of different ways to get in touch, including through online chat, social media and mobile and banking apps.
“As you will appreciate, phone lines are very busy at this time and we would encourage only those customers who are facing an immediate issue with their finances to call their provider in the first instance.”
