I have to admit that my radar missed this when it was announced yesterday afternoon. In my defence I was preoccupied with a couple of client-related issues which took up all my attention until early evening. But, make no mistake, this was a big announcement.
The failure of CBILS to quickly make up the cash flow issues businesses are suffering has been a big concern. The impact on business survival at a month-end with salaries due and JRS payments only now starting to flow has clearly concentrated the mind.
There is a lot of detail still to be announced, but if the CBBL works as well as JRS has this is a real lifeline for business. The only caveat is that the business is not an “undertaking in difficulty”.
The prospect of a simple application process and a 24-hour turnaround will be a huge lifeline to many businesses struggling to get CBILS or additional overdrafts. The conversations I have had with several bankers today indicate to me that they are very much onside in terms of assisting their customers in getting this funding
The concern is that the £50,000 limit may not be enough for many businesses but the counter to this is that the government have shown a willingness to be flexible in their support so more may be forthcoming in time. I’ll post more details as and when they are announced but as ever feel free to contact me if you need assistance.
