To support SMEs affected by the Covid-19 crisis, the Government put in place the highly publicised Coronavirus Business Interruption Loan Scheme (CBILS) to encourage lending to UK SMEs with the 90+ lenders participating in the scheme benefiting from an 80% government guarantee for loans to UK businesses. £13.68 billion have been deployed by accredited lenders through the scheme so far.
Businesses applying for the loans have not only been using the scheme to fund trading losses during challenging times, but many of the 60,000 successful applicants have also taken the opportunity to partner with supportive lenders who are able to tap into the scheme to provide development and/or acquisition capital to enable borrowers to strengthen their business during these uncertain times.
However, the scheme is now drawing to a close, with a deadline for applications to the British Business Bank required by 30th September 2020. This application is one of the final stages in the lending process and as such the practical deadline for lenders to evaluate new or “top up” to existing loans will likely be much sooner. As such, we are advising companies seeking CBILS funding to expedite applications to lenders ASAP. We note that without an extension to the deadline, new applications to CBILS will not be available should a potential second wave hit later in the year.
In the past few months, we have successfully assisted a number of clients with a variety of uses for their CBILS loans (working capital, development capital, acquisition financing) in securing funding including situations where we have stepped into an existing loan application process to negotiate terms, expedite completion or justify an increase in the lending quantum.
Please do not hesitate to contact us if you require assistance with your application to CBILS.