23 March 2020

Coronavirus – Grants, Funding, Schemes

Coronavirus – Grants, Funding, Schemes

In response to the current uncertainty and vast information about the schemes and funding on offer to businesses, we want to try and provide a separate view and clarity on what is available and what it means.

Business Interruption Loan Scheme (CBILS)

This scheme was launched by the Government to provide support to businesses that need an injection of capital or financial support. Details of the scheme are available here, the key points that may be missed but should be noted by the borrower are;

Security: At the discretion of the lender, the scheme may be used for unsecured lending for facilities of £250,000 and under. For facilities above £250,000, the lender must establish a lack or absence of security prior to businesses using CBILS. If the lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so. The borrower always remains 100% liable for the debt.

Loans below £200,000 will not require a personal guarantee (directors guarantee

This means the borrower may be better looking at other finance routes or mitigating their personal guarantee risk.

How to apply – Coronavirus Business Interruption Loan Scheme (CBILS)

Given the points above, the CBILS may or may not be the best way for the borrower to seek lending. The approval process and model will not be quick and may become overloaded with lenders having a concentration of borrowing on this scheme.

To try and make things a little simpler we have put together a simple document detailing;

  • The basic information needed to apply for CBILS
  • The supporting information required
  • The questions lenders are going to be seeking answers to and which should be covered by the borrower upfront

On receipt of the above we will;

  • Make contact with the borrower and with the benefit of the information held will look at the best options and point the client in the right direction

It should make it simpler and take away some of the worry and uncertainty.

The application document has been generated by using the information required from various lenders and condensing to make it simpler. There is a word document and pdf version for you to use.

Word Document – Coronavirus_Business_Interruption_Loan_Scheme

PDF – Coronavirus Business Interruption Loan Scheme – Summary Application

CBILS Affordability

The CBILS scheme details have been quite clear in the amount each business is eligible to borrow, the caveat is that each borrower needs to prove affordability. Affordability, as is generally the case, remains a guarded factor among lenders.

This video covers our view on affordability and what to expect;

Buy to Let Mortgages – Impact due to Coronavirus

One area where we are seeing big changes and big movement is the buy to let mortgage sector. We have seen huge variations among lenders with some reducing LTV ratios and tightening affordability whilst others are using niche valuers and continuing to lend.

This updated video gives you a better picture;

Business Grants – Coronavirus Business Rates Grants

The business rates grant scheme is being delivered by local authorities and will start to be made available from 6th April. The eligibility criteria are below;

The government will provide additional Small Business Grant Scheme funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBRR), rural rate relief (RRR) and tapered relief. This will provide a one-off grant of £10,000 to eligible businesses to help meet their ongoing business costs.

You are eligible if:

  • your business is based in England
  • you are a business that occupies property
  • you are receiving small business rate relief or rural rate relief as of 11 March

For business who haven’t been asked to apply or received details from their local authority then this link allows you to find more details on your local authority.

Details on the grant scheme are available in this video;


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