Convert my Bounce Back Loan (BBL) to a Coronavirus Business Interruption Loan (CBIL)
Due to many original accredited lenders failing to meet the spike in demand for the Coronavirus Business Interruption Loan Scheme, businesses took out a loan through the Bounce Back Loan Scheme to cover an immediate cashflow need.
Many of those same businesses now find themselves looking for further cover and are unable to take out further funding through the Bounce Back Loan Scheme.
The British Business Bank, who manage both schemes, will allow those businesses to take additional funding through the Coronavirus Business Interruption Loan Scheme, as long as this new funding settles the original funding.
Why take out a loan through the Coronavirus Business Interruption Loan Scheme (CBILS)?
The biggest benefit of taking out a loan through the Government backed CBILS is that the directors of the business do not have to provide personal guarantees or security for funding under £250,000.
You can also take funding of more than £50,000, which is the maximum amount through the BBLS.
To make the loans more affordable, the Government will cover the fees and interest for the first 12 months, so no monthly payments for the first 12 months. There is also no fees or charges for early settlement of the finance.
Key Features of the Coronavirus Business Interruption Loan Scheme (CBILS)