Coronavirus Business Interruption Loan Scheme Update
At Budget 2020, the Chancellor announced that a ‘Coronavirus Business Interruption Loan Scheme’ (CBILS) will temporarily replace the Enterprise Finance Guarantee (EFG), becoming available over the coming weeks.
For SMEs, there will be a Business Interruption Loan scheme to offer firms up to £5m of loans with no interest due for the first six months, up from a previous proposal of just £1.2m.
Perhaps most importantly, those lenders that supported the EFG Scheme will now support the CBIL Scheme that provides a government guarantee of up to 80% for the lenders, enabling them to lend to businesses affected by COVID 19.
These loans will be for sound businesses with insufficient security to meet lenders lending criteria and encompasses a range of facilities including term loans, asset finance, business loans and invoice finance.
This is important as there is a range of lenders from banks to niche lenders who all have different lending criteria. This enables us to provide much broader support for your business.
We have had full access to the EFG Scheme and anticipate being able to support new and existing clients to access the CBIL Scheme. This represents an opportunity if required to source funding from as wide a range of lenders for businesses affected by the virus.