Earlier today, Rishi Sunak announced additional support will be available for businesses who have been impacted by the Omicron variant. So, what do we know? Businesses…
In some ways it does not seem like nine months ago when the Coronavirus Business Interruption Loan Scheme (CBILS) was launched. In some ways, however, it does seem like a lifetime ago!
CBILS closes to new applicants from 31 March 2021
Further to the Chancellor’s recent announcement, CBILS will close to new applicants on 31 March 2021, extended from 31 January. Applications received after this date will not be eligible for CBILS funding.
Based upon previous experience, and from communications with accredited lenders we were advised “To help ensure that borrowers don’t miss out on the valuable benefits of CBILS, we are encouraging all potential CBILS borrowers and their advisers to start their CBILS application process as soon as possible. Providing the necessary supporting financial projections information is often a source of delay for borrowers, so we would urge them to prepare this information and supply it at the point of application if possible. This will help accelerate the funding process and avoid any potential delays caused by the high volumes of expected applications.”
I would anticipate that the other lenders accredited under the CBILS scheme would echo the above.
Bounce Back Loan Scheme (BBLS)
BBLS will now close on 31 March 2021.
Interaction between the two schemes
As a reminder, BBLS loans are capped at £50,000. If you have taken out a BBLS but now have reconsidered your cashflow forecasts and you require more funding, you can apply for a CBILS loan. As reported by another of the accredited lenders yesterday “If you’re then successful, you will need to settle your existing BBLS loan. This is because you can’t hold both loans at any one time. You’ll need to ensure that you request enough funds to cover the cost of repaying your bounce back loan, in addition to the extra funds you want to request through CBILS.”
We were already aware of a number of businesses who had taken out BBLS loans who were now revaluating/ evaluating their funding needs and were now looking to top up via a CBILS. As a reminder to anyone contemplating this – do not expect the CBILS loan application process to be as quick or easy as a BBLS (see above).
Other funding streams
We are awaiting confirmation of funding that will be provided from local authorities to support businesses through the second lockdown. When these are confirmed, this will be updated here.
Likewise, keep an eye on our blog for updates on CJRS and SEISS. And news of any other support potentially available via central government.
PKF Francis Clark
We have assisted a number of our clients to access CBILS backed products from a range of lenders. If you have any queries on the above and/ or wish to discuss us working with you on a funding application please do not hesitate to contact your usual point of contact at PKF Francis Clark – but please note time is now of the essence…