It’s unlikely you’ll jump for joy when you think about... Read more
Coronavirus Business Interruption Scheme Covid-19
26 March 2020
You will have no doubt heard about the launch of the Government’s Coronavirus Business Interruption Loan Scheme (CBILS) which is being coordinated by the British Business Bank.
It is essentially a lending scheme for small and medium businesses (SMEs) who are experiencing disruption due to the current coronavirus pandemic. Loans are available for up to £5m for a maximum term of 6 years to help businesses with cash flow.
WHY USE CBILS?
It is a loan scheme, and not a Grant. You will have to pay back any money that is borrowed. However, the government will pay any interest and lender fees for the first twelve months, and provide the lender with a guarantee that if you are unable to repay, to cover 80% of the loan balance. The scheme has initially been put in place for the next six months, and replaces the ‘Enterprise Finance Guarantee Scheme.’
WILL I BE ELIGIBLE?
The scheme covers loans, overdrafts, asset finance (cars and equipment etc) and invoice finance (discounting or factoring of invoices). The maximum facility is £5m. Loans and asset finance facilities can be repaid over, up to six years, overdrafts and INVOICE finance for up to 3 years.
To be eligible, you need to show that your business was viable before the current crisis, and that it will be viable afterwards.
HOW DO I APPLY?
Each lender has an application process that will require supporting documentation.
WHAT DO I NEED TO SUPPORT MY APPLICATION?
You will need:
- Latest actual or draft accounts.
- Current Management information including profit and loss and balance sheet.
- A forecast to show the impact of COVID-19 on your business and how your business will recover.
- Information on any other Government support you are eligible for including rates relief, VAT deferment, salary-support and sector grants.
HOW WE CAN HELP?
We can talk you through whether you’re eligible, and also discuss if the scheme is right for you. We have an experienced Corporate Finance team with over 100 years’ experience which means we are well placed to support you in reviewing your funding application or assisting with the more sophisticated submissions. Our experienced advisors can talk you through your situation to ensure you are taking advantage of all other help that is available to your business and help you with collating information, putting together management information or forecasting and ensuring you are already taking advantage of any other help available to you.
We can project-manage the whole process from application through to funding;
- Accounts preparation.
- Producing and verifying management information.
- Reviewing your plan.