Back in December the Chancellor, Rishi Sunak, extended the Coronavirus Business Interruption Loan Scheme (CBILS) to 31st March 2021 - That deadline is fast approaching but there remains time for those businesses who still wish to utilise the scheme with a number of lenders still accepting applications.
Remind me, what is CBILS?
CBILS provides financial support to SME's across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.
The scheme is provided by the British Business Bank through a group of over 100 accredited lenders including high street banks and challenger banks.
Facilities up to £5,000,000 (max. per borrower) are available through the scheme in the form of term loans, overdrafts, invoice finance and asset finance with the government covering the first 12 months interest payments and any lender-levied charges.
Repayment terms stretch up to 6 years for term loans and asset finance; 3 years for overdrafts and invoice finance.
To encourage lending, the government will also provide lenders with a partial guarantee against the outstanding finance balance - However, the borrower will remain 100% liable for the debt.
Personal guarantees (PG's) will not be required for facilities up to £250,000 - Anything above this level will be at lender discretion.
Am I too late to apply?
There's still time but the deadline is fast approaching.
We work with a number of lenders who continue to accept applications for CBILS - Some intend to do so until close of play on March 31st!
Time is of the essence so get in touch with the team at KeySME today - We possess the knowledge and experience to guide you smoothly through the CBILS application process.
Update
On 3rd March 2021, as part of the Spring Budget, Rishi Sunak announced a new Recovery Loan Scheme which will launch on 6th April 2021 and run through to 31st December 2021.
We'll be posting further details about this new scheme on our Insights page in due course - Keep your eyes peeled!
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