Need a helping hand to access Government backed finance in light of #COVID-19?
The Coronavirus Business Interruption Loan Scheme (CBILS) delivered by the British Business Bank, will enable businesses to apply for a loan of up to £5 million with the Government providing the lenders with a fee-free guarantee of 80% on each loan. The scheme is intended to support businesses who need access to cash to pay rent, salaries, suppliers, purchase stock, etc. In addition to loans, the scheme also supports term facilities, overdrafts, invoice finance facilities and asset finance facilities.
- Up to £5m facility: The maximum value of a facility provided under the scheme will be £5m, available on repayment terms of up to six years
- 80% guarantee: The scheme provides the lender with a government-backed, partial guarantee (80%) against the outstanding facility balance
- No guarantee fee for SMEs to access the scheme: No fee for smaller businesses. Lenders will pay a fee to access the scheme
- Interest and fees paid by Government for 12 months: The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees so smaller businesses will benefit from no upfront costs and lower initial repayments
- Finance terms: Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years
- Security:At the discretion of the lender, the scheme may be used for unsecured lending for facilities of £250,000 and under
- It is important to note that the borrower always remains 100% liable for the debt
- Available to all UK sectors, aside from banks, building societies, insurers and reinsurers (but not insurance brokers); The public sector including state funded primary and secondary schools; Employer, professional, religious or political membership organisation or trade unions. Restrictions apply to fishery, aquaculture and agriculture businesses
- Must be UK-based in its business activity, with annual turnover of no more than £45m
- Have a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender, and for which the lender believes the provision of finance will enable the business to trade out of any short-to-medium term difficulty
HOW TO APPLY:
The scheme is delivered via circa 40 accredited lenders – in the first instance, applicants are advised to apply directly to the lender of their choice – ideally online, as phone lines are expected to be busy – with their borrowing proposal.
If you need support in putting together a business case and financials for an application, please email email@example.com. We are prioritising this area of work to assist our clients in accessing the funding they need.