For business loans
Coronavirus Business Interruption Lending Scheme (CBILS)
We are delighted to be a participating lender in the above scheme which has been set up to assist UK businesses affected by the current Covid-19 outbreak.
Under CBILS, we will continue to offer loans of between £26,000 and £150,000 to viable UK businesses with a trading history in excess of 2 years and we look forward to assisting as many of your clients as possible.
All applications will continue to be made via the portal. There are a few specific changes which are outlined below:
1) As part of the CBIL loan application, the borrower will be required to complete a Business Interruption Payment (BIP) declaration which will enable the government to cover the first 12 months of interest payments, which will be paid to the lender.
The BIP form will be supplied with the loan documents. The BIP will also cover any arrangement fees.
2) All borrowers under CBILS are required to pay the principal from payment 1. In view of the current circumstances, many of the businesses that receive a CBILS loan will be struggling to generate cash flow in the short term, so we will deduct the first 3 principal payments from the disbursement amount.
3) After the first 12 months, the borrower will start to pay both the principal and interest.
4) The borrower remains liable for 100% of the loan throughout so please make this clear to any potential applicant.
5) On all applications, please clearly state that the virus outbreak has affected the business and attempt to explain/quantify the effect(s).
6) When submitting applications, we will require up to date VAT information and personal Asset and Liability statements to be provided upfront with all other supporting documentation in order for an application to be underwritten.
7) Due to the high demand, we are already seeing, timescales are likely to be impacted over the coming weeks so please help us to assist your clients by providing correct and complete information at all times.