At the end of June applications to the Coronavirus Business Interruption Loans Scheme (CBILS) exceeded 100,000, with the last week (21 – 28 June 2020) seeing a surge in applications as the economic outlook for many businesses continues to worsen. During this period businesses applied for 5,594 loans under CBILS. The scheme allows businesses that have suffered a loss of income due to Covid-19 to apply for business loans of between £50,001 and £5 million with nothing to pay for the first twelve months. There are also options for invoice finance, asset finance and business bank account overdrafts.
Lending has now reached £29.51 billion of Bounce Back Loans and £11.07 billion under CBILS and the two schemes have also achieved very different levels of approval rates. 81% of Bounce Back Loans have already been approved compared to 50% of loans under the CBILS.
Yesterday the British Business Bank, that manages the Coronavirus business loans schemes on behalf of the Government announced more new lenders. 365 Business Finance, FOLK2FOLK, Handelsbanken, LendingCrowd, Maxxia and Nucleus Commercial Finance will be offering finance to smaller businesses under CBILS. While, Close Brothers, ThinCats and HSBC Bank plc will provide finance under the Coronavirus Large Business Interruption Loan Scheme (CLBILS) to medium and large UK businesses (turnover of £45m or more). Coutts and Arbuthnot Latham join the other 21 Bounce Back lenders.
All these lenders are now accredited to offer CBILS, but they may not yet be ready to start lending due to preparations required in their processes and systems. Businesses should check either on the firm’s website or speak to a business loans broker to find out which lenders can help them now.
