The Coronavirus Business Interruption Loan Scheme (CBILS) has again been extended, and is now due to close on 31st January 2021.

Please refer to our previous posts concerning the Scheme should you wish to research your potential to benefit from the Scheme, or alternatively follow this link:

https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme

 

  1. What is the Coronavirus Business Interruption Loan Scheme (CBILS)? 
  • CBILS is a scheme that can provide facilities of up to £5m for smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow;
  • CBILS supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance;
  • The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months, capital repayment holidays of up to 12 months are also a feature of the loans.
  • The borrower always remains 100% liable for the debt.

 

  1. Should I (Re)Consider Making An Application Before The Scheme Runs Out? 
  • You really do need to consider how the Pandemic has, and still might, affect your business
  • You should consult your current trading patterns and cash projections to monitor what is happening to your business through Lockdown II and beyond
    • You really do need to have a minimum rolling 90-day cash forecast in place to review immediate cash needs;
    • You must understand how your cash outgoings are to be managed and controlled for whatever duration this Pandemic may impact upon your business, and remember we may well be headed for a long and stressful winter as the economic recession takes its full impact upon demand.
    • And remember – whenever recovery materialises you need to take into account that as your turnover builds, your cash may deplete as often customer credit stretches beyond the need to pay employees, key suppliers and day to day running costs – the business could be moving toward recovery yet run out of cash!

 

  1. Am I Eligible? 
  • Smaller businesses (“SME”) from most sectors can apply for the facility;
  • Your business needs to be
    • UK-based in its business activity;
    • Operate with an annual turnover of no more than £45m;
  • You need to be able to demonstrate that your business was not classed as a business in difficulty on 31 December 2019

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/cbils-faqs-for-smes

 

  1. Need Help To Review Your Cash Position?
  • Please contact us urgently – time is tight already and Christmas is looming;
  • We have a dedicated team focussed upon Scheme eligibility and the application process led by jasonm@barrons-bds.com

 

  1. What If I Have Already Received a Bounce Back Loan (BBL)? 
  • You can still apply for a CBIL Loan;
  • You would need to settle the BBL Loan out of the funds generated from the CIBL.

 

  1. Is The Bounce Back Loan (BBL) Still Open Too?
  • Yes, you can still apply for a BBL Loan until 31 January 2021 currently.

 

  1. Want To Know More About CBILS?
  • You can access full information and frequently asked questions following the link below

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/cbils-faqs-for-smes

  • Or just ring us – we will be delighted to guide you through having made numerous successful applications on behalf of clients already. 

Barrons has put together a helpful guide to running your business during the coronavirus crisis.