On 17 March chancellor Rishi Sunak announced SMEs would be able to access up to £5 million from a new loan scheme, up from the £1.2 million outlined in the Budget.
Although nearly 1,000 businesses have already received more than £90 million under the scheme, Sunak on 3 April amended the initiative.
Until now, an SME with annual turnover of less than £45 million had to be unable to secure commercial funding to benefit.
This will no longer be a requirement.
Additionally, Sunak said banks will not be allowed to ask for personal guarantors for loans less than £250,000.
For loans over that amount, personal guarantees will be limited to 20% of the cash after any other recoveries from business assets.
The government will continue to cover the first 12 months of interest and fees under the scheme.
“This is a national effort, and we’ll continue to work with the financial services sector to ensure that the £330 billion of government support, through loans and guarantees, reaches as many businesses in need as possible,” said Sunak.
He will be speaking to bank chief executives next week to discuss how the schemes are working.
Business secretary Alok Sharma added: “The coronavirus pandemic represents a challenge to businesses unlike any other they have faced before, and we are determined to support them through this difficult time.
“The changes we are making to the Coronavirus Business Interruption Loan Scheme will make it easier for business to access the lending we have put in place, helping them to continue trading and protect the livelihoods of their staff.”
There is also a new Coronavirus Large Business Interruption Loan Scheme which will benefit companies with an annual turnover of between £45 million and £500 million.
