The Coronavirus Business Interruption Loan Scheme (CBILS) launched on the 23 March 2020 but the scheme is due to end this month. The CBIL scheme was designed to help businesses through the pandemic, which means it has better features than most normal loans.
Any businesses wishing to apply for CBILS funding must submit their applications by the 31st March 2021. Time is running out!
CBILS Eligibility
Your business must:
- Be UK-based in its business activity
- Have an annual turnover of no more than £45 million
- Have a borrowing proposal which the lender would consider viable, were it not for the current pandemic
- Self-certify that it has been adversely impacted by the coronavirus (COVID-19)
- Not have been classed as a “business in difficulty” on 31 December 2019, if applying to borrow £30,000 or more
The loan offers no interest for the first 12 months, no upfront fees and funding facilities of up to £5m.
There are more than 40 accredited lenders throughout the UK. We recommend that you speak to your bank in the first instance.
What do lenders need from me?
- The amount you would like to borrow
- What the money is for
- The period over which you will make the repayments
You may be asked for supporting evidence to show you can afford to repay the loan, this is likely to include:
- Management accounts
- Cash flow forecast
- Business Plam
- Historic accounts
- Details of assets
The Bounce Back Loan Scheme (BBL)
The BBL scheme, is aimed at smaller businesses and is also due to end on 31st March 2021. However, if you have previously received a BBL but now need more funding you may still be eligible for a larger CBILS loan providing the new loan is used to consolidate the BBL.
If you miss the deadline, you won’t be able to apply for a CBILS or BBL’s loan. However, in his budget Rishi Sunak announced a Recovery Loan Scheme (RLS). The RLS is less generous than the CBILS scheme although full details have not yet been released.
Finally, If you would like more information or if we can help support your application give us a call or drop us an e-mail . We have helped several clients secure loans and we would love to help you!