The Chancellor of the Exchequer has today announced that the coronavirus business interruption loan scheme (CBILS) has been extended up until the 30th November 2020. This will ensure further support is in place for those businesses who have yet to take the funding that they may require.
Those businesses who wish to convert from their bounce back loan, or are making their first application for government support, will now be able to benefit from the coronavirus business interruption loan scheme (CBILS)
The CBILS initiative is a government backed scheme designed specifically to offer financial support for UK businesses during the current COVID19 pandemic.
It allows UK businesses to apply for finance of up to £5million with the government guaranteeing 80% of the funding to the lender.
Coronavirus Business Interruption Loan Scheme (CBILS) statistics as of 20th September 2020:
To make the loans more affordable, the government will cover the interest for the first 12 months of the loan with no capital payments either. If you want to settle the loan early, you will pay no early repayment charges.
How much can I borrow?
Under the CBILS initiative you can apply for up to 25% of your annual turnover, though a minimum application amount of £50,001 will mean that you will need to turnover more than £200,000 per annum.
Do I need to provide a personal guarantee?
Under the CBILS, you will not need to offer a personal guarantee of any form for facilities below £250,000.
For facilities above £250,000, personal guarantees may still be required, at the lender’s discretion, but they will exclude the Principal Private Residence (PPR), and recoveries under these are capped at a maximum of 20% of the outstanding balance of the CBILS facility after the proceeds of business assets have been applied.
I have been rejected by a lender for a CBILS already, can I reapply?
Yes, if one lender turns you down, you can still approach other lenders within the scheme.
The Funding Store have a panel of CBILS accredited lenders that can assist with your search for that right business loan. Once you have decided what best suits your business needs then why not contact us on 01908 880420 or apply below.