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CBILS and Bounce Bounce Loans – the deadline for applications is nearly here

With the deadline for applications to the Government backed Bounce Back Loan Scheme (BBLS), Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBIS) now less than a week away, we thought it fitting to share the latest (penultimate) stats and a few related thoughts.

Latest stats

Data released yesterday (25 March) by HM Treasury can be found at link.  Our summary, with bracketed figures being the movement in the past month, is set out below.

Cumulative value of approved facilities (£bn) Cumulative number of approved facilities Cumulative number of applications
BBLS 46.53 (2%) 1,531,095 (2%) 2,056,587 (52k)
CBILS 23.28 (6%) 98,344 (6%) 233,247 (19k)
CLBILS 5.3 (0%) 716 (2%) 1,130 (18)
Future Fund 1.12 1,140 2,206
Total 76.23 (3%) 1,631,295 (3%) 2,293,170 (70k)

UK Finance reported thatSince the schemes were first put in place, the UK banking and finance industry has supported 27 per cent of British businesses through the initiatives.”

Business use of the schemes by geographic region and sector can be found on British Business Bank webpage.

And for statistics on the broader perspective of lending / finance raising by SMEs in 2020 I would suggest you check out the British Business Bank’s “Small Business Finance Markets 2020/21” – you can find this in our recent blog.

The final countdown

We are currently working on a small number of applications for CBILS.

Businesses must register their interest in a loan by 31 March, and lenders must make an offer to successful applicants by 31 May.

What next – recovery stage?

As quoted from British Business Bank’s report “At this crucial time for the economy, it has never been more important to have a deep understanding and knowledge of the finance markets which supports UK businesses”.

I like to think that we strive to understand the range of funding options available to SMEs and share our knowledge with clients and wider community through a number of forums including blogs, funding workshops and other events.

Nick Tippett will be hosting our upcoming Conversation over Coffee on Equity funding.

I will be following Nick’s example by coordinating a virtual Finance in Cornwall event in June (to tie in with G7 meeting in the county).

And we will continue to nurture, and communicate, an understanding of the range of funding options /potentially available to / source of funding for businesses – including the Government backed successor to CBILS  – The Recovery Loan Scheme.

To finish with… a return to basics but with a post Covid twist?

As Paul Crocker commented in his article on the impact of Covid on business finance in 2021, that he felt it is arguable that ‘the UK Government was misguided to drop the requirement for forward looking information from the Coronavirus Business Interruption Loan Scheme (CBILS) application process and, more so, to make the Bounce Back Loan Scheme (BBLS) application as easy as it was/is.’

I anticipate a return to lenders pacing more importance of financials including business plans, projections and management accounts in assessing lending propositions in 2021.  But with a twist – fluid business plans and projections – constructed on robust data, with a clear vision but with flexibility to react to situations built in; recognition of the need for a business culture that is responsive to change and an emphasis on up to date financials (with analytics) i.e. making the financials current and real.  These are all areas where we anticipate working with clients in the months ahead.

FEATURING: Richard Wadman
Richard qualified as a Chartered Accountant with KPMG in 1993. Since 2006 he has worked in Corporate Finance, firstly with the predecessor firm in Truro… read more
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