United Kingdom Chancellor of the Exchequer Rishi Sunak is expected to announce a modification to the Coronavirus Business Interruption Loan Scheme (CBILS), Sky News reported on Wednesday, citing unnamed insiders.
The report claims that Sunak will eliminate one of the features of the plan that could possibly cause a sudden and large increase in the number of bankruptcies declared by small and medium-sized enterprises (SMEs) that wouldn't be able to gain financial aid under current rules and to keep their businesses afloat amid coronavirus-caused difficulties. Under current CBILS guidelines, an SME can receive such loans only if it isn't eligible for other lending options.
Sunak discussed the loan scheme changes with Barclays plc, HSBC Bank plc, Lloyds Banking Group plc and Royal Bank of Scotland on Wednesday, according to the report.
