Coronavirus Business Interuption loan Scheme (CBILS)

Posted 29/04/2020
Written by Robert Parkin
Category COVID-19 HELP

Coronavirus Business Interuption loan Scheme (CBILS)

29 April 2020: the UK’s seven largest small business lenders have relaxed evidence requirements for applications to the existing Coronavirus Business Interruption Loan Scheme.

To speed up the provision of finance to small and medium-sized businesses under CBILS, the largest seven SME lenders (Barclays Bank UK, Danske Bank, HSBC, Lloyds Bank, NatWest, Santander and Virgin Money) have stated that rather than relying on businesses providing forecasts and business plans in applications, lenders will use their own information.

A Joint statement from the seven largest SME lenders and UK Finance proclaimed: “Following the changes to the scheme announced today lenders will only ask businesses for information and data they might reasonably be able to provide at speed and we will not require the provision of forward-looking financial information or business plans from businesses applying for CBILS-backed lending, relying instead on our own information to assess credit and business viability.”

While the exact details of the changes are still to be released, the moves should make the scheme easier to access and make the application process quicker. However, businesses should still assess carefully the implications of taking on debt finance and be comfortable that this is the right solution for them at this time.

Links: 
https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/
https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme

 

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