When the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS) were introduced last year to support businesses affected by COVID-19, it was anticipated that they would only be needed in the short term. However, a fourth extension to the deadline for putting in applications has now been confirmed.
As things stand businesses have until 31st March 2021 to apply – and for those businesses able to cope with repayment this remains an opportunity not to be missed.
We believe that the highly favourable terms available NOW are unlikely to be there at expiry.
- Government, through British Business Bank, pays the first year’s interest and lending fees – note that this part is a GRANT and does not have to be repaid;
- No early repayment penalty;
- Reduced interest rates;
- No personal guarantees on loans up to £250k;
- With BBL, self-certification and a very light touch process to gain loans up to £50k.
Businesses need to be aware that the borrower remains liable for the loans under both schemes. Although the Government is providing a guarantee to the lender of 100% in the case of BBLS and 80% in case of CBILS, it is the lender’s own money and the lender has to follow its own normal debt collection procedures before being eligible to apply to the Government for support to cover any losses.
ART Business Loans is a CBILS accredited lender. We offer CBILS loans, of between £50,001 and £150,000. These have enabled many businesses to achieve growth, change direction, take advantage of new opportunities, or just stay afloat with much needed cash flow support during the difficult trading conditions caused by the global pandemic.
If you have already taken a BBLS loan and now need to access more debt finance, you can use a CBILS loan to repay a BBLS loan and borrow more on top, but you can’t have a BBLS loan and CBILS loan at the same time.
If you wish to retain your BBLS loan and require a small additional loan to help your business, which is not a CBILS loan, contact our loan managers. We offer loans from £10000 upwards.
Full details of the schemes and providers are best found at www.british-business-bank.co.uk.
February 8, 2021 9:38 am