Government extends SME coronavirus loan scheme

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.