The Government has announced Government backed loans to a value of £330bn for businesses. Loans are available for SME’s of up to £5m with and may be subject to “interest free” terms in the first 12 months. The scheme was launched on 23 March 2020 and the deadline to apply has been extended until the end of March. Lenders will have the ability to extend the length of loans from a maximum of six years to ten years, without these changes affecting the borrower’s credit rating.
Important points to note are:
- It is advisable to first approach your own bank for a loan preferably via their website.
- You will need to put a business proposal to your lender which shows that your business would be viable were it not for COVID-19. Dodd & Co is here to help with compiling your borrowing proposal.
- The decision on the loan ultimately rests with the bank and not the Government.
- If the lender feels they can offer finance on “normal” terms without using the scheme then they will do so.
- Businesses are still 100% liable for the repayment of these loans. The Government support is to the lender, not directly to the borrower.
Coronavirus Business Interruption Loan Scheme (CBILS)
Dodds are here to help with compiling your borrowing proposal.
