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Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan.

Senate Money is an approved brokerage offering accessing to the CBILS and Bounce Back Loan.

CBILS

The government have released the CBILS to help businesses through this difficult period. The main highlights of the scheme are:

  • Loans from £50,001 to £5,000,000

  • Lenders arrangement fee paid by the Government

  • To support the business through COVID disruption

  • Interest paid by Government for 12 months

  • Interest becomes payable after 12 months

  • Loan may be up to 6 years so nothing to pay for first 12 months

  • No early repayment penalties

For all facilities, including those over £250,000, CBILS can now support lending to smaller businesses even where a lender considers there to be sufficient security, making more smaller businesses eligible to receive the Business Interruption Payment.

The scheme provides the lender with a government-backed, partial guarantee against the outstanding balance of the finance.

The borrower remains 100% liable for the debt.

No personal guarantees for facilities under £250,000.

Personal guarantees may still be required, at a lender’s discretion, for facilities above £250,000, but they exclude the Principal Private Residence (PPR) and recoveries under these are capped at a maximum of 20% of the outstanding balance of the CBILS facility after the proceeds of business assets have been applied.

Loan criteria:

  • Your application must be for business purposes and the business must have been adversely impacted by the Coronavirus (COVID-19)

  • Your CBILS-backed facility will be used to support primarily trading in the UK

  • You must be a UK-based SME with annual turnover of up to £45m

  • You wish to borrow up to a maximum of £5m. (Finance terms are to six years for term loans and asset finance. For overdrafts and invoice finance facilities, terms will be up to three years)

  • Your business must generate more than 50% of its turnover from trading

Bounce Back Loan

Please note that the bounce back loan is only available directly from the main high street banks. If you would like to apply please contact them direct.

  • Must not exceed 25% of the turnover in the calendar year 2019, from a minimum of £2k to £50k

  • Terms loans up to 6 years

  • Early repayment is allowed at any stage without Early repayment charges/fees

  • Personal Guarantees cannot be taken

  • No Recovery action can be taken against a borrows primary private residence or primary personal vehicle

  • No repayments during the first 12 months

  • Lenders will have a 100% guarantee from the government

  • 2.5% fixed interest rate

  • No guarantee or scheme fees charged by the lender


Key Eligibility criteria for Bounce Back Loans


UK Based businesses established by 1st March 2020
Its not open to individuals other than sole traders or partners acting on behalf of a partnership
Most industries are eligible except; state funded education sector, entities providing insurance (other than insurance brokers), deposit taking banks.
Borrow must be able to self declare the details in the application
A borrower must not be in bankruptcy or in debt restricting proceedings or liquidation – at time of application
More than 50% of the income of the business must be from trading activity – except for charities or a further education college

If you would like to discuss the CBILS or Bounce Back Loan, please contact us at info@senatemoney.co.uk or telephone 01675 443878.

 

Interested in finding out more?