Lloyds Rushes to Correct Flaw That Prevents Businesses from Receiving Covid Loans | Business

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Lloyds Banking Group is rushing to correct an error that prevented subsidiaries of foreign companies from struggling for weeks to access loans supported by the British government during the coronavirus crisis.

Subsidiaries in the UK have been overtaken by the criteria for being eligible for the business interruption loan scheme (corbavirus) guaranteed by the government at 80% (Cbils), as well as by the internal bureaucracy within the bank Lloyds which automatically prevented account managers from accessing good loans for their clients.

To be eligible for Cbils – which targets small and medium-sized businesses that operate most of their businesses in the UK – a company’s annual turnover cannot exceed £ 45 million. However, local subsidiaries must account for the turnover of their entire group when they request to participate.

It was one of the main hurdles faced by Milton Keynes-based steelmaker Sikla UK when it approached Lloyds for an emergency loan of £ 250,000 in March.

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