Letter from John Glen MP (Economic Secretary to the Treasury) and Paul Scully MP (Minister for Small Business, Consumers and Labour Markets; Minister for London) to Bob Wigley (Chair, UK Finance) on a recent change to EU State Aid rules that will mean more small businesses can access government-backed loans.

The letter sets out that the European Commission has relaxed its State Aid rules so that small and micro businesses – meaning fewer than 50 employees and turnover less than £9 million – will be exempt from elements of the ‘undertaking in difficulty’ test, and are now eligible for the Coronavirus Business Interruption Loan Scheme (CBILS).

The letter also sets out our expectation that all accredited CBILS lenders will implement the changes, noting the consequence that businesses whose CBILS applications they have previously declined may now be eligible.