At David Allen, we have the expertise to quickly establish where you are and help you navigate through these difficult times. We can assist with cash flow forecasts and business plans in support of lending decisions and have the software to stress test these forecasts for different business scenarios.
You may benefit from the Coronavirus Business Interruption Loan Scheme.
The Coronavirus Business Interuption Scheme (CBILS)
What’s being offered?
- The scheme was launched on 23 March 2020 to support small and medium-sized businesses to access bank lending and overdrafts.
- Loans up to £5m are available, with the Government providing 80% guarantee.
- First 12 months interest free and no up-front guarantee or arrangement fees.
To be eligible for the scheme
- The application must be for business purposes.
- The applying business must be a UK-based SME with an annual turnover of less than £45m.
- The applying business must generate more than 50% of its turnover from a trading activity
- The applying business will use the lending to support primarily UK-based trading
- The maximum available to borrow under the scheme is £5m. The maximum term will be six years for loans and asset finance, and three years for overdrafts and invoice finance)
How to apply
- If you meet the above criteria, contact your current bank.
- Prepare a borrowing proposal which demonstrates the business being able to trade out of any short to medium term difficulty. Ensure your accounting information up to date as this may be required for your application.
The full rules of the Scheme and a list of the accredited lenders offering the scheme can be found here (https://www.british-business-bank.co.uk/ourpartners/coronavirus-business- interruption-loan-scheme-cbils/accredited-lenders/).
The Coronavirus Bounce Back Loan (CBBL)
The Coronavirus Bounce Back Loan will provide a lifeline to those that have been struggling through the red tape of the Coronavirus Business Interruption Loan Scheme (CBILS).
✔️ Launched on 4 May 2020
✔️ Up to 25% of turnover, to a maximum loan of £50,000
✔️ Guaranteed 100% by the Government
✔️ Capital and interest free for the first 12 months
✔️ For businesses that were viable on 31 December 2019
You cannot apply if you’re already claiming under the CBILS.
The Chancellor has said that most eligible firms will be able to access this loan by filling out a standard form, and the funds will be available within 24 hours of approval.