Business Interruption Loan Update
We don’t have full details yet, but we wanted to let you know that the Coronavirus Business Interruption Loan (CBIL) Scheme is going to be revamped after it has come under considerable criticism.
And this is very positive news for small businesses. As a firm we were personally very disappointed with how the CBIL was being offered and administered by the banks. We believe the following changes will now be implemented (but will confirm in due course)
- The loans are available to businesses who have not been refused a commercial loan
- The interest rate of the loan after the 1st 12 months interest free are likely to come down from some of the eye-watering rates we had seen quoted. (30%!!!!) But there is still no cap on interest rates from the banks for these loans.
- For loans up to £250,000, business owners will not have to supply personal guarantees against their own savings or property.
If you are thinking of accessing the CBIL scheme or a commercial loan scheme or any other type of borrowing, please get in touch as we can help you through the process.
As with any kind of formal borrowing, you will need:
- Your books fully up-to-date
- Up-to-date management accounts
- Projections and forecasts for the business
When more details are available next week, we will be in touch.
