ThinCats has called for an extension to the coronavirus business interruption loan scheme (CBILS) from the end of September to Spring next year.
The alternative lender, which gained accreditation to deliver CBILS loans in April, said that the scheme should be extended to help firms grow and aid the economic recovery.
ThinCats has reported a rise in the number of firms seeking funds under CBILS for growth rather than survival, by supporting organic growth or funding acquisitions at more attractive valuations.
The lender said the scheme should be extended to support businesses to grow to create jobs in order to aid the economic recovery and warned that without an extension, there will be a squeeze on liquidity.
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“Clearly, further lockdowns or social distancing restrictions cannot be ruled out, impacting some sectors more severely than others, however, the trend that we are seeing for using CBILS for growth purposes rather than pure business survival is encouraging,” ThinCats said in a blog on its website.
“The government should also be encouraged as it is growing businesses that will provide the new jobs needed to make up for the hundreds of thousands lost as a result of the pandemic.
“It will, nevertheless, take time for many businesses to establish their requirements for strategic growth funding and their decision-making process will be heavily influenced by the course of the pandemic over the autumn and winter months.
“This is why we are encouraging the government to give these businesses more time, by extending the current deadline for CBILS from the end of September until Spring 2021.
“Without an extension and the accompanying partial guarantee provided by the government, there is a real risk that critical strategic funding for growth – which could also deliver valuable productivity gains – will dry up leading to a repeat of the liquidity squeeze that CBILS were designed to avoid.”