New finance available for businesses impacted by Covid-19
Firstly it is a hugely uncertain time for SMEs. With Coronavirus shaking the UK economy and forcing many SMEs to close their doors for the foreseeable future, business are faced with greater demands for support, including access to finance. Businesses can now apply for Coronavirus Business Interruption Loans
Secondly to help SMEs through this difficult time, the Government have launched the Coronavirus Business Interruption Loan Scheme, (CBILS). This brand new scheme provides facilities of up to £5m for smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.
Delivered by the British Business Bank (BBB), through accredited lenders and partners, the CBILS will support the continued provision of finance to SMEs during the Covid-19 outbreak. Extra relief is provided as the Government will also cover the first 12 months of interest payments.
In particular the Government’s Covid-19 Business Interruption Lending Scheme is now live and has over 40 accredited partners.
CBILs Eligibility Check
- Your application must be for business purposes
- You must be a UK-based SME with an annual turnover lower than £45m
- Your business must generate more than 50% of its turnover from trading activity
- Your CBILs facility will be used to support primarily trading in the UK
- You wish to borrow a maximum of £5m
CBILS Information Requirements.
If you are a business and thinking of applying for the new Coronavirus Business Interruption Loans (CBILS) please make sure you throughly read the guidance provided by your lender.
Furthermore we are seeing a lot of incomplete applications which may slow down the speed of processing.
You will need to:
- Explain how the virus has affected your business.
- Provide minimum of 12 months forecasts showing the impact on you business. This will be used to justify the amount of loan you are claiming for and needs to take into account the other measures you have taken like Vat deferments, Loan and asset finance payment holidays, rent breaks, employee retention scheme help, new shareholder capital introduced, extra terms from suppliers. To help with this P&L, balance and cash flows are advisable
- Explain what other forms of government help you have applied for or not been able to apply for
- Recent trading financials. Lenders will require up to date Management figures to show how your business was trading before the lockdown. The loan must be fully repaid by the end of the term requested so please apply for a realistic term.
- Explain what steps you have taken to try and safeguard your business (reduced hours, cost cuts, Furloughed staff)
Get in touch
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