Yesterday the Chancellor announced that the Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) and the Future Fund would be extended until the end of the year.
We have since clarified with the British Business Bank that the official deadline for these schemes is November 30th, and so wanted to update you of this important fact following yesterday’s Swoop newsletter. It is our hope that with this extension, business owners will have more opportunity to access the money needed to protect the financial health of their businesses during this challenging time.
So far we have seen over £100m in CBILS applications go through the platform, and have a team that can quickly litmus test companies and then get those eligible ones across quickly to lenders.
As a reminder, the benefits of CBILS include: Borrow between £50k-£5m at rates between 2.5-9% up to a 10 year period No repayments for the first 12 months No personal guarantees are required for loans below £250k.
The critical point being – if you are just now realising that you need CBILS support, then your business probably has other short to medium term cash flow issues.
Add that to the change in the furlough scheme, rolling regional quarantines, and the expected impacts of both of those on employment levels, then we see many SMEs that are looking at significant cash flow issues. Those companies have an urgent need for innovative strategies to survive. It is now obvious to all that there are no short term fixes for the impact of COVID, and this may be the situation for 2 to 4 more years.
Most businesses now realise that the government planning for BREXIT has not been as clear or timely as they needed, and are also making plans to adapt to the reality of changes to supply lines, export rules, and service arrangements.
All of that amounts to a “perfect storm” for SMEs.
It is not all tough news – we have clients that have grown 10x since the first lock down. They were the smart ones who pivoted early, using innovative products to address revelant needs in the current situation.
If you think you may be eligible for CBILS and would like to discuss that or alternative finance options, please get in touch today and we can help you find a way forwards.