Hot Business News Today

Hot Business News Today

Government plans permanent state-backed small business loan scheme

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Originally written by Timothy Adler on Small Business
The government is planning to replace existing coronavirus business support with a permanent state-backed small business loan scheme.
Under the plan, which would be launched in January, the government would guarantee 80 per cent of loans to small businesses, ranging from a few thousand pounds up to £10m per company over a six-year lending period.
In effect, the new state-backed SME loan scheme would extend the Coronavirus Business Interruption Loan Scheme (CBILS) but with a lower threshold. The minimum CBILS loan is £10,000.
>See also: Treasury eyes hitting self-employed gig workers with VAT charge
According to the Financial Times, the banks would set their own interest rate for their loans, but the rate is likely to be capped at about 15 per cent – just like the CBILS – which is far higher than the 2.5 per cent fixed interest rate of the parallel Bounce Back Loans Scheme (BBLS).
Research by our sister title GrowthBusiness found that lenders are charging anything between 3 per cent and 15 per cent for CBILS loans.
As of last month, the CBILS and the BBLS have lent £60.64bn to struggling businesses between them.
And the new state-backed SME lending scheme would have more stringent

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Hot Business News Today

Europe’s small businesses call for three-month post-Brexit transition period

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Originally written by Timothy Adler on Small Business
Companies need a minimum three-month transition period for new regulation, even if a Brexit deal is agreed, say Europe’s small businesses.
SMEunited, the organisation which represents small businesses at an EU level, say businesses need a phased introduction to trading with Britain post-EU.
In order to allow SMEs necessary preparation time for new customs rules, transport requirements, phytosanitary tests and more, a phased three-month transition is required, says SMEunited. Otherwise, the new conditions will have serious repercussions for SMEs on both sides of the Channel.
>See also: How Brexit is going to affect your business – #1 imports
SMEunited warned many SMEs are struggling to adapt to the changing status of the EU-UK relationship. SMEunited has been encouraging its members to inform SMEs of the changes to EU-UK trade conditions, such as new customs rules and transport requirements.
Craig Beaumont, chief of external affairs at the Federation of Small Businesses said: “Some border checks and payment rules are already delayed to July, however small firms will need time to get to grips with the new requirements. We have asked the government to include in the deal a phased introduction of new trade arrangements for the most complex areas,

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