WHAT THE SCHEME OFFERS
Each lender will have there own criteria, but to eligible to apply your business must meet the following;
Launched April 2020
Government will be providing lenders with a partial guarantee of 80% on each loan to give lenders the confidence to provide finance to SMEs. The guarantee is not for the business, as such the business (and its directors) remain responsible for repaying the finance.
Under CBILS The scheme has been updated so that personal guarantees cannot be requested for lending below £250,000 (await confirmation the same applies for CLBILS).
For facilities above £250,000 lenders may request personal guarantees, whereby the directors are personally liable for repaying the loan if the business is unable to do so.
Security (usually by way of a debenture or floating charge) this could be security of business assets or personal assets but the directors primary residential property is excluded.
A list of accredited lenders will be published on the British Business Bank Website.
Click here for a full list of lenders, that can be searched /filtered by type of lending and region >
Like any loan application, lenders will require wealth of information, which will vary depending on the type of finance and the terms of the finance offered, but is likely to include;
HOW TO APPLY
REPAYMENT AND FEES
Under this scheme Interest and capital repayments will commence immediately. There is no interest free period or repayment holiday.
See government link https://www.gov.uk/government/news/chancellor-expands-loan-scheme-for-large-businesses?utm_source=e1eae5d2-6726-4b01-a7b4-29c502d3659a&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate
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Lucinda Matkin - Licensed Insolvency Practitioner & Chartered Accountant