03/04/2020- Changes to the Coronavirus Business Interruption Loan Scheme (CBILS)

A revamped loan fund for ailing firms hit by the coronavirus lockdown will have an immediate impact, RBS has said.

RBS chairman Sir Howard Davies admitted there had been problems but expects to see a “sharp increase” in lending to small firms in the next few days.

On Thursday, Chancellor Rishi Sunak overhauled the scheme amid claims banks were taking advantage of the crisis.

The government has pledged to guarantee £330bn of loans but only £145m has been lent so far.

Small firms say they have struggled with onerous eligibility criteria for the government-backed loans, which are being issued by High Street banks and other lenders.

They have also complained of facing interest rates of up to 30% and being asked to make unreasonable personal guarantees.

It comes as the UK is facing recession as large parts of the economy are shut down.

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(Source: BBC News)