Inca COVID-19 Update 9: Access to Business Interruption Loans Made Easier
14th April 2020
Coronavirus Business Interruption Loan Scheme
Many clients have been telling us about the less than helpful responses they’ve been getting from banks when applying for emergency funding under the Coronavirus Business Interruption Loan Scheme (CBILS).
Following the Chancellor’s personal intervention to ensure that banks deliver these loans, we expect to see access to funding through the scheme become significantly easier.
- Banks must offer interruption loans first – rather than promoting their own products over CBILS
- Banks won’t require any kind of personal guarantees for loans below £250,000
- Businesses not previously eligible – because they met the requirements for a standard commercial facility, can now access funding through CBILS
Remember to shop around
If you apply for a loan, you should shop around. Not all the 40+ accredited lenders can provide every type of finance available under CBILS, and the amount of finance offered varies between lenders.
Information you will need to provide
Any bank you apply to will require you to provide the following:
- Details of the loan
- The amount you would like to borrow
- What the money is for: The lender will check that it is for a suitable business purpose & the right type of finance for your needs
- The period over which you will make the repayments: The lender will assess whether the loan is affordable for you
- Supporting documentation: You will need to provide certain evidence to show that you can afford to repay the loan. This is likely to include:
- Management accounts
- Cash flow forecast
- Business plan
- Historic accounts
- Details of assets
You can find more information about CBILS and accredited lenders at: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/for-businesses-and-advisors/
We hope you find this information useful. Please feel free to share it with other business owners in your contact sphere.
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