CBILS deadline approaching fast on the 31st March 2021
Updated: Nov 10, 2021
The Coronavirus Business Interruption Loan Scheme was created by the British Business Bank in order for the government to provide working capital to UK businesses that were in trouble due to the Covid-19 pandemic. The interest on the loans to businesses is completely covered by the government for the first 12 months. It was designed to boost growth and help cash flow for businesses in trouble as a result of the pandemic.
Deadline
Due to the ongoing nature of the pandemic, the deadline for CBILS support was extended until the 31st March 2021, which is now just around the corner. Many businesses who could potentially benefit from an additional sum of cash or a facility whereby they pay no costs for a year should apply as soon as possible. Even for healthy businesses it may be worthwhile setting one up just in case. Many CBILS providers will halt applications a couple of weeks before the final deadline so as not to overload their system of inbound inquiries. Getting an application now will mean you will have access to these facilities moving into 2022. There have been calls to extend the scheme further, but at the moment its approaching quickly and there’s a strong potential it won’t be extended this time.
What can CBILS be used for?
Many businesses don’t realise that the loans can be used for capital expenditure, the refinancing of existing facilities or money can be used to fund projects that look to expand the growth of the business. It’s not just for businesses that need a quick bit of cash.
What are the key features of the scheme?
Loans of up to £5m (decided by roughly 25% of annual turnover)
Repayment terms up to 6 years
Interest covered by the government for 12 months
No personal guarantees needed
Many offer unsecured facilities that can work alongside your current banking setup
If your business is looking to take advantage of the scheme before the deadline ends,but you’re confused about the vast amount of options on the market, then contact us today so we can help you find the right provider for your CBILS requirements.
