Can I get a second CBILS loan? And other FAQS.
The Coronavirus Business Interruption Loan Scheme (CBILS) is a scheme that was set up by the UK government to provide support for SMEs during the coronavirus pandemic. CBILS offers a number of different business financing options –with the government on a war footing with the aim of preventing cashflow losses and business failure as a result of the crisis.
Can you apply for more than one CBILS loan?
Yes, you can apply for a second (and third, and fourth…) CBILS loan.
However, there are a few things you need to know first. The rule of thumb is that you can borrow up to 25% of your 2019 turnover, so unless in special circumstances (where lenders will look at a % of your 2019 wage bill or your self-certified cashflow requirement), this is the maximum you will be able to borrow – to a maximum of £5m.
If you haven’t reached the maximum loan amount for your business then you will still be eligible for further facilities to take you towards this limit. IE, if you have already borrowed 15% of your 2019 turnover amount, you would still be able to borrow 10% with further CBLS facilities.
Am I eligible?
SMEs from a wide range of sectors can apply for the full amount available through the scheme – which is up to £5 million. The government has defined SMEs as having a 2019 turnover of between 200k and 45 million. However, there are eligibility criteria you need to meet. You must be a UK-based business and the majority of your turnover (over 50%) needs to be in the UK.
It is important to note that in order to borrow from the CBILS, lenders need to see that your business has been affected by the current coronavirus situation, which, despite it being unlikely that you have not been impacted in some way; you will be able to confirm through a simple process of self-certification.
You can read a full list of eligibility requirements here.
How do I apply?
The British Business Bank has a list of accredited lenders who offer CBILS. We are an accredited introducer for the vast majority of them, including Nucleus and Funding Circle. Our team of experts will assess your business finances and match your business to the most suitable lender. We will handle the whole application process and aim to make it as straightforward as possible for our clients. With direct lines of contact with our lenders, we make sure your application goes through promptly with a quick turnaround time and the optimum terms possible.
Get in contact with Funding Bay here.
How long do I have to apply?
Initially, the scheme was introduced in March of 2020 for a period of 6 months. However, since we have seen continued effects of the virus on business, it has been extended until the end of March 2021. There may be an extension in some form, but having spoken to the BBB, we think this is relatively unlikely. Applications are taking on average a few weeks, so it is important to get inquiries to lenders as quickly as possible.
With the first year of charges free, and no personal guarantee necessary, this opportunity to have the capital required to both recover and thrive is unique. Do not miss the opportunity to help your business recover. Get in contact with Funding Bay today.
