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Coronavirus Business Interruption Loan Scheme (CBILS)

If you run a business in the United Kingdom that has been affected by the Covid-19 pandemic, you may be eligible for a Coronavirus Business Interruption Loan.

The CBILS scheme, introduced by the British Business Bank after the March 2020 budget announcement, has been created to help businesses facing temporary financial shortfalls as a result of the coronavirus crisis.

In this guide, we will be clarifying how the scheme works and which businesses may be eligible for support.

What is the Coronavirus Business Interruption Loan Scheme (CBILS)?

Enforced lockdown in the United Kingdom was deemed necessary to prevent the spread of Covid-19, though this has led to significant revenue losses, disruptions and delays for thousands of businesses.

The aim of the Coronavirus Business Interruption Loan scheme is to provide qualifying businesses affected by the pandemic with access to affordable loans of £50k to £250k, for which the government will pay all fees and interest for the first 12 months.

Approved lenders throughout the UK will be able to issue these Coronavirus Business Interruption Loans to qualifying business, many of which would normally fail to qualify under typical lending criteria. This relaxation of eligibility requirements and excellent repayment terms could provide thousands of UK businesses with a lifeline they need to ride the Covid-19 crisis intact.

It is however important to note at this stage that the terms and conditions of the scheme outlined by the government to date are considered temporary and are subject to change at any moment. Full details of the CBILS scheme can be found here.

Coronavirus Business Interruption Loan Scheme: Key Features

A basic summary of the key features of the Coronavirus Business Interruption Loan Scheme is as follows:

  • Fast-access loans of £50,000 to £250,000 available for qualifying businesses, with different lenders setting different maximum loan amounts within this threshold.
  • Flexible repayment terms of one year up to a maximum of five years, allowing repayments to be spread as preferred by the business.
  • No guarantee fees for smaller businesses to increase the affordability of the business interruption loans.
  • All interest and charges covered by the UK government for the first 12 months, eliminating upfront costs and fees from the equation.

If the loan is repaid within the first year, the borrower will be subject to no interest charges or borrowing costs whatsoever. The Coronavirus Business Interruption Loan scheme is effectively providing a free-of-charge cash advance system for qualifying businesses, whose revenues and cash flow have been affected by the coronavirus outbreak.

Eligibility Under the Coronavirus Business Interruption Loan Scheme

Each lender taking part in the Coronavirus Business Interruption Loan scheme will set its own limitations on how much any one business can apply for (from £50k up to a maximum of £250k).

All other criteria and eligibility requirements will remain fixed across all lenders as follows:

  • The business must be based in the UK with a maximum £45m annual turnover
  • All funds issued under the scheme are to be used for business purposes only
  • Not more than 50% of the company’s turnover must come from trading activity
  • The CBILS-backed loan must be used to support primarily trading in the UK
  • All funds will be repaid as agreed within the allotted 12 to 60-month period
  • The business must be in an otherwise strong and stable financial position

Importantly, the business must be able to demonstrate that during normal circumstances (if the Covid-19 crisis had not occurred) it would be in an otherwise amicable financial position. This is because the Coronavirus Business Interruption Loan scheme is exclusively aimed at those affected by the Covid-19 crisis directly, not businesses that were already struggling before the outbreak of the virus.

How UK Property Finance Can Help

As a leading independent broker, we can provide the objective support and advice you need to assess your suitability for a Coronavirus Business Interruption Loan.

Along with establishing your eligibility under the CBILS scheme, we can help you find your ideal provider from our extensive panel of specialist lenders across the UK. Even if your requirements are complex or urgent, you can count on UK Property Finance helping you find the best way forward for your business.

Call 0116 464 5544 anytime for an obligation-free consultation or email us on info@ukproperyfinance.co.uk.

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Coronavirus

Financial Support During the Coronavirus Covid-19 Crisis

The Covid-19 crisis is taking a toll on almost every household, business and individual throughout the United Kingdom. Alongside the obvious health implications of the coronavirus outbreak, millions are finding themselves plunged into financial turmoil.

For some, the future of their businesses or employment status is looking increasingly bleak. For others, meeting mortgage payment obligations and keeping their accounts in the black is already proving difficult.

Irrespective of the nature and severity of the financial difficulties being faced, it is at times like these that it is important to carefully consider all available options. Particularly if there is a way of raising funds in an affordable way or switching to a deal that could save you money, it is an option worth considering.

Independent Advice and Support

UK Property Finance understand the concerns of businesses and households hit by the coronavirus crisis. We also appreciate how for most people across the UK, now seems like the worst possible time to take on additional debt or consider unnecessary outgoings.

However, it is important to remember that tailored financial products and services at the right time can bring about significant and ongoing savings.  Likewise, there are various short-term lending facilities available at exceptionally low rates of interest, which can prove ideal for negotiating temporary financial shortfalls.

From bridging loans to competitive remortgage deals to all types of specialist secured loans, leveraging your equity to weather the current crisis could enable you to emerge unscathed.

As an independent broker with no direct brand ties or affiliations, UK Property Finance is able to provide the honest and impartial advice you need to make an educated and informed decision. We guarantee the utmost in professionalism and objectiveness at all times, adopting a pressure-free approach to the consultancy we provide.

However unfortunate or urgent your financial situation may be, you can count on the committed support of UK Property Finance at this difficult time.

Planning Ahead for All Eventualities

As things stand right now, nobody really knows when the Covid-19 crisis will come to an end. More importantly, there are no current signs of an immediate end to the enforced lockdown and closure of businesses across the UK.

While the government may have lightened the load for many business owners with a series of relief measures, it is still important to think long-term and to plan for all eventualities.

We understand that the priorities of every business, household and individual are unique. This is why we specialise in 100% bespoke financial solutions, tailored to meet the exact requirements of each client we work with. From raising emergency capital as quickly as possible to protecting homes and business assets long term, we can provide the support you need to safeguard your financial future.

Call UK Property Finance Anytime

Whether you are in need of immediate assistance with an urgent financial issue, want to know more on the Government CBILS (Coronavirus business interruption loan scheme) or planning ahead for an uncertain future, we would be happy to hear from you anytime.

Contact a member of the team at UK Property Finance for an obligation-free consultation or to discuss your concerns at a time of national crisis.

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