Posted January 8, 2021

Lockdown 3: Is your CBILS application ready?


Back in November of 2020, the Chancellor extended the Coronavirus Business Interruption Loan Scheme (CBILS) for the second time, with deadlines for the application now set for the 31st of this month.

Originally launched last year after the first government lockdown was introduced, CBILS provides financial support to businesses that have seen their cashflow disrupted due to the outbreak of the coronavirus. Up until October 2020, over 73,000 businesses had received more than £17 billion from CBILS.

Over the last year, our expert team at Finance 4 Business have been helping businesses gain access to the vital finance they need, supporting them from inception to completion to source the right lender for their business.

Recent Developments

On Monday, the government officially announced another lockdown and so many businesses might be looking for financial support. Rishi Sunak has already declared that businesses in retail, hospitality and leisure will receive new grants to keep them afloat until spring.

For businesses in other industries, you may be able to “top up” any existing Bounce Back Loans, which up until October 2020, has supported 1.3 million businesses across the country with over £40 billion. Alternatively, it’s not too late to apply for CBILS.

Finance District

Gain access to CBILS

One of the lenders from our extensive panel has reopened for refinance applications this week, offering support to SMEs across the country. The loan acquired can be used for business investments, to refinance existing debt from another lender, and for cashflow purposes. With limited funds available, it is important that you act quickly to ensure you qualify.

You can borrow from 100k to £5m with up to 6 years commitment terms. Up to 75% LTV is available, however this is subject to lending policy and underwriter assessment.

Businesses interested in borrowing through CBILS can also choose to receive a Business Interruption Payment. In doing so, the Government will make a BIP to cover the first 12 months of interest payments and any lender-fees such as valuation costs.

To be eligible for CBILS, you must:

  • Be UK-based
  • Be an SME with an annual turnover of less than £45 million
  • Have a borrowing proposal
  • Provide suitable security
  • Generate more than 50% of turnover from trading activity
  • Not have been classified as a “business in difficulty” on 31st December 2019

How do I apply?

As a specialist financial broker, our expert commercial and property team at Finance 4 Business can help.

Call us on 0121 309 0444 or email to see how we can source the best financial support for you and your business.