CBILS (Coronavirus Business Interruption Loan Scheme), was initially introduced to be a lifeline for businesses where there was insufficient security for a loan by other means. The Government announced the scheme advising that they would then step in to give the lender an 80% guarantee. All well and good in theory, but this was widely reported to have resulted in lenders offering high interest facilities with requests for personal guarantees from SME directors and the fact that such facilities were offered rendered the SME unsuitable for CBILS.
The chancellor has once again stepped in and made it clear that the requirement for companies to have first tried to get a normal commercial loan elsewhere will be dropped. Additionally, personal guarantees will not be required for loans of less than £250k.
Here at CBM we are watching closely and expect to see banks open their websites for direct application for CBILS where 12 months interest free loans can be secured. However, CBILS is still a loan and lenders will want to assess your business in order to make a decision on your application. A professional application, complete with a solid business case, expressed in a formal business plan, with reasoned and justified financial projections are likely to be necessary and will significantly increase chances of success.
CBM have put together a business support package specifically designed to help with CBILS applications. To find out more please visit our CIBILS page here, call us on 01604 420 420 or complete the form on the right.