Business owners urged to apply for COVID-19 support loans
UK government announced two loans scheme to help small and medium businesses to survive during unprecedented times of the coronavirus and the continued lock-down.
Many companies will struggle with their finances as their operation was suspended, but they still experienced cost associated with the business.
UK government set up two new schemes to offer help for businesses (CBILS and Bounce Back Loans) and one for self-employed (Self-employed grant).
CBILS – Coronavirus Business Interruption Loan Scheme
CBILS loan scheme is designed for SME companies that would need loans above £50,000 and under £5 million and are losing revenue due to the coronavirus. It is operated by British Business Bank via accredited business finance lenders. There are over 40 accredited lenders and the list is growing every week.
Those lenders can offer help in the form of:
- Invoice finance
- Asset finance
Under this scheme, business finance below £250,000 would not need personal guarantee.
Who is eligible for the CBILS loan?
- UK-based business in need for finance
- Have an annual turnover below £45 mil
- Self-certify that the business has been affected by coronavirus
- Not been classed as ‘business in difficulty’
What document do I need to apply?
- Management accounts
- Historic accounts
- Details of assets
- Business plan
Some of the documents listed above can be optional, depending on the particular lender’s requirements.
Full list of accredited lenders can be found on British Business Bank website.
Another loan scheme for business during coronavirus is Bounce Back Loans scheme. Read more here.