The question still remains unanswered as to whether the Coronavirus Business Interruption Loan Scheme (CBILS) will be coming to an end or whether it will be extended. Initially the scheme was due to finish at the end of September but the current perception is, that with so many businesses taking advantage, there could be an extension.
The key eligibility factors to bear in mind when applying are:
- Your business must be based in the UK
- The business must not have an annual turnover of more than £45 million
- You should have a borrowing proposal which any lender would consider viable if it were not for the interruption bought about by the Coronavirus pandemic
- You need to self-certify that the business has been adversely impacted by COVID-19
CBILS can be used for:
- Business Loans
- Invoice Finance
- Asset Finance
Some key facts to understand:
- Funding provided through CBILS is government-backed, with a partial guarantee against the outstanding balance of the finance. Of course, the borrower still remains 100% liable for the debt.
- The government will pay the interest and relevant lender charges for the initial 12 months.
In addition to CBILS, if you are considered an early stage business, classified as a Start-Up, then you might want to consider the Start-Up Loans programme which is an initiative set-up by the British Business Bank with loans of between £500 to £25,000 available.
If you have any questions or need some more help in regards to CBILS then please call us on 01993 706403 or e-mail firstname.lastname@example.org.