Businesses have until 30 September 2020 to apply for a loan via the Coronavirus Business Interruption Loan Scheme (CBILS).
Aimed at supporting businesses whose revenue and cashflow are affected by Coronavirus, CBILS allows SMEs to apply for loans of up to £5million from a variety of lenders including high street banks and challenger banks as well as asset based and specialist lenders.
There are a number of criteria a business must satisfy to be eligible for CBILS – full details can be found here.
Lenders must be registered with the British Business Bank and CBILS gives the lender a government-backed guarantee for the loan repayments. Different lenders will have different requirements so it is worth having an initial conversation before applying to a potential lender, to ascertain whether or not your proposal is likely to be successful. If your current bank can provide CBILS then start there as you have an existing relationship.
Finally, don’t leave these conversations too late as demand is expected to grow closer to the deadline and lenders will get busier.
For full details including a list of approved lenders and a step by step guide on how to apply, click here to visit the British Business Bank CBILS information pages.
These notes have been prepared for the purpose of an article only. They should not be regarded as a substitute for taking legal advice.