{"id":657,"date":"2020-04-08T00:00:00","date_gmt":"2020-04-08T00:00:00","guid":{"rendered":"https:\/\/srcadvisory.com\/coronavirus-business-interruption-loan-scheme-cbils-major-update\/"},"modified":"2020-04-14T11:52:08","modified_gmt":"2020-04-14T11:52:08","slug":"coronavirus-business-interruption-loan-scheme-cbils-major-update","status":"publish","type":"post","link":"https:\/\/srcadvisory.com\/coronavirus-business-interruption-loan-scheme-cbils-major-update\/","title":{"rendered":"Coronavirus Business Interruption Loan Scheme (CBILS) \u2013 Major update"},"content":{"rendered":"
\n

We recently provided clients and friends of the firm with a detailed analysis of the Coronavirus Business Interruption Loan Scheme (CBILS): \u00a0https:\/\/srcadvisory.com\/blog\/important-coronavirus-business-interruption-loan-scheme<\/a><\/p>\n

However, the Chancellor announced last week some improvements to the scheme for small businesses as some lending institutions had not shown the engagement and flexibility anticipated by the government.<\/p>\n

The most common hurdles have been:
\n\u2022\u00a0\u00a0 \u00a0Requirements for directors to put their homes or savings up as collateral.
\n\u2022\u00a0\u00a0 \u00a0The need to demonstrate no other means of funding before accessing the CBILS.
\n\u2022\u00a0\u00a0 \u00a0High interest rate charges following the initial 12-month interest-free period.
\n\u2022\u00a0\u00a0 \u00a0Personal guarantees<\/p>\n

As a result, the Chancellor announced that the scheme would be extended to all viable small businesses affected by COVID-19. \u00a0There had been debates on line and in the print media that an unacceptable number of small and medium-sized businesses would become insolvent before accessing emergency funds.<\/p>\n

New rules will prevent lenders from requesting personal guarantees for loans under \u00a3250,000. \u00a0For facilities above \u00a3250,000, personal guarantees may be taken, excluding the borrower\u2019s Principal Private Residence, and capped at a maximum of 20% of the outstanding balance of the CBILS facility after the proceeds of business assets have been applied.<\/p>\n

The government has also stated that it will make operational changes to speed up lending approvals and continue to cover the first twelve months of interest and fees.<\/p>\n

Here are links to the major high street banks:<\/p>\n

Lloyds Bank: <\/strong>\u00a0 \u00a0https:\/\/www.lloydsbank.com\/business\/coronavirus\/cbils.html<\/a>
\nNatWest Bank: <\/strong>https:\/\/www.business.natwest.com\/business\/support-centre\/service-status\/coronavirus\/government-scheme.html<\/a>
\nBarclays Bank:<\/strong> https:\/\/www.barclays.co.uk\/business-banking\/borrow\/coronavirus-business-interruption-loan\/<\/a>
\nRBS Bank:<\/strong> https:\/\/www.business.rbs.co.uk\/business\/support-centre\/service-status\/coronavirus\/government-scheme.html<\/a>
\nHSBC: <\/strong>https:\/\/www.business.hsbc.uk\/en-gb\/finance-and-borrowing\/credit-and-lending\/coronavirus-business-interruption-loan-scheme<\/a><\/p>\n

New loan scheme for larger businesses<\/strong><\/p>\n

A new Coronavirus Large Business Interruption Loan Scheme (CLBILS) was simultaneously announced to support mid-tier firms not covered by the original measures.<\/p>\n

This scheme also provides a government guarantee of 80% to banks making loans of up to \u00a325m to businesses with an annual turnover of between \u00a345m and \u00a3500m.<\/p>\n

Loans backed by the guarantee will be offered at commercial rates of interest, but the government will not cover interest or fees in the same way as the small business scheme.<\/p>\n

The new scheme will launch later this month and will support a wide range of finance products including short term loans, overdrafts, invoice finance and asset finance.<\/p>\n

Businesses would remain responsible for repaying any facility they may takeout.<\/p>\n

To be eligible, your business must:
\n\u2022\u00a0\u00a0 \u00a0be UK-based in its business activity
\n\u2022\u00a0\u00a0 \u00a0have an annual turnover between \u00a345 million and \u00a3500 million
\n\u2022\u00a0\u00a0 \u00a0be unable to secure regular commercial financing
\n\u2022\u00a0\u00a0 \u00a0have a borrowing proposal which the lender:
\no\u00a0\u00a0 \u00a0would consider viable, were it not for the COVID-19 pandemic
\no\u00a0\u00a0 \u00a0believes will enable you to trade out of any short-term to medium-term difficulty
\nYou should apply to your bank for this type of loan.<\/p>\n

SRC-Time are one of the South East\u2019s leading accountancy firms in advising businesses in all aspects of their accounting and tax affairs and we are able to assist in any issue raised above.<\/p>\n

Our expert team is available to provide you with advice and can be contacted on 01273 326 556 or you can drop us an email at info@src-time.co.uk alternatively, speak with an account manager to get any process started.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

We recently provided clients and friends of the firm with a detailed analysis of the Coronavirus Business Interruption Loan Scheme (CBILS): \u00a0https:\/\/srcadvisory.com\/blog\/important-coronavirus-business-interruption-loan-scheme However, the Chancellor announced last week some improvements to the scheme for small businesses as some lending institutions had not shown the engagement and flexibility anticipated by the government. The most common hurdles […]<\/p>\n","protected":false},"author":4,"featured_media":734,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14],"tags":[19,18],"acf":[],"_links":{"self":[{"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/posts\/657"}],"collection":[{"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/comments?post=657"}],"version-history":[{"count":0,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/posts\/657\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/media\/734"}],"wp:attachment":[{"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/media?parent=657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/categories?post=657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/tags?post=657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}