The British Business Bank has written to accredited lenders confirming that they have until 30 November to consider and approve applications for the coronavirus business interruption loan scheme (CBILS), effectively extending the deadline.
Though applications for loans must still be in by 30 September, clarity on the two-month processing period reduces pressure on borrowers and lenders alike.
In an official statement, the Bank said:
“This letter is a technical update for clarification, not notification of an extension to the schemes. The Government has indicated that it will make an announcement on the future of the schemes next month.”
CBILS is aimed at medium-sized businesses turning over no more than £45 million per year.
The deadline for approving loans under a related scheme for larger businesses, known as CLBILS, is 20 October, with the consideration period for lenders running until 31 December.
New figures from the Government reveal that more than 60,000 CBILS loans have been issued since the scheme launched, worth £13.7 billion, along with 516 CLBILS loans worth £3.5 billion.
More than half of CBILS loan applications have been turned down by banks, however.