COVID-19 Funding & Support
Further changes to the processes enabling access to Business Loans were announced on Friday 3 April 2020. With the Government having pledged to guarantee £330 billion of loans in mid-March, regrettably only a very small number of applications have been successful, which continues to present serious problems for a great many businesses.
In the wake of significant blockages to the ability of companies to access the Coronavirus Business Interruption Loan Scheme (CBILS), the Chancellor has issued fresh instructions to Banks, widening certain criteria and relaxing some conditions upon which Banks have thus far sought to lend. This has yet to have any significant impact.
Apart from the availability of funding support under the CBILS, the Chancellor has further announced that larger firms with turnover between £45 million and £500 million will also be eligible for more help with state-backed loans of up to £25 million. Over and above the original CBILS, the Government has recently introduced the Coronavirus Large Business Interruption Loan Scheme (CLBILS). The Government will provide guarantees of 80% to enable Banks to make these loans to firms in this higher turnover range. Loans backed by this guarantee under the CLBILS will be offered at commercial rates of interest.
Whilst criteria may have been relaxed in certain areas, without doubt the key to obtaining funding under any of these measures will still require a properly constructed business case, supported by good quality projections and well presented management information. This is one of our specialisms and we can assist you in this process.
Our network of relationships with other professionals including, accountancy and legal firms, alternative lenders, PE houses and Banks themselves is extensive and potentially an important element in helping you to bridge the gap as quickly as possible.
We have attached a series of fact sheets which we hope will be helpful to you. If you require more specific guidance or support then we recommend that you speak with our Corporate Finance and Advisory Team directly. Contact details are set out below.