The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.
The Scheme enables businesses with annual turnover of up to £45m to access loans, overdrafts and other finance of up to £5m.
The Government will make a ‘Business Interruption Payment’ to cover the first 12 months of interest payments and loan charges, and they will guarantee 80% of the loan balance (subject to certain conditions) to encourage lenders to provide the finance.
Note that the borrower remains 100% liable for the debt.
Under the scheme, no personal guarantees of any form will be taken for facilities below £250k.
Although the Government are guaranteeing 80% of the balance, banks are still requiring a significant amount of information from borrowers before agreeing to provide finance such as management accounts, financial projections, business plans, statutory accounts and asset lists.
If you would like Ellis & Co to assist you in applying for a Coronavirus Business Interruption Loan, please get in touch to discuss your requirements.