On December 17th 2020 Chancellor Rishi Sunak announced that the Coronavirus Business Interruption Loan Scheme (CBILS) is being extended to the end of March 2021. Previously, the deadline was set to the end of January.
As we begin the new year under coronavirus restrictions, you might be considering applying for further financial support in the form of a second CBILS loan. It is in fact possible to apply for a second CBILS loan. However, there are two main conditions you’ll have to meet in order to be eligible (as well as additional lender criteria).
You can apply for multiple CBILS loans if you own various companies.
You can apply for a second (or first) CBILS loan using the Funding Options platform. To get started, tell us how much you’d like to borrow, what it’s for (e.g. working capital) and how quickly you need the funds.
As soon as you submit the initial information, our smart technology will compare 40+ accredited CBILS lenders and match you with the right finance options for your needs.
If you’ve already received the maximum amount through a CBILS facility or aren’t eligible for one of the government’s loan schemes for whatever reason, you may still be eligible for another business finance option.
At Funding Options, we work with 120+ lenders specialising in different types of business funding. One of the benefits of applying for funding through us is that you gain access to expert help throughout the process to ensure you get the best deal.
We've been selected by the government-owned British Business Bank as a designated platform to find finance for businesses. It’s free and doesn’t affect your credit score.
According to the British Business Bank who manages both schemes, you can’t take out a Bounce Back Loan Scheme facility if you’ve been approved for a CBILS facility, and vice versa.
However, “a business that has a CBILS facility can apply for a Bounce Back Loan Scheme facility if the Bounce Back Loan Scheme facility will refinance the CBILS facility in full.
“All accredited lenders who have approved CBILS loans so far will allow customers to refinance their loan into the Bounce Back Loan Scheme where appropriate, however, borrower protections under these schemes differ, and businesses should discuss these with their lender.”
You’ll have to meet various eligibility requirements to be eligible for a CBILS loan. These include (but aren’t limited to) the following:
As with any business loan, you’ll have to provide documentation when you apply. We’ll talk you through exactly what you need, but it may help to speed things along if you have the following to hand in advance:
CBILS loans are unique in that they come with a government-backed guarantee to encourage lending. The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.
It’s important to remember that as the borrower, you remain 100% liable for the debt. For loans under £250,000, you won’t be expected to provide a personal guarantee.
Facilities above £250,000 may require a personal guarantee at the lender’s discretion, however recoveries are capped at 20% of the outstanding balance of the loan once the proceeds of business assets have been applied. A Principal Private Residence (PPR) cannot be taken as security.
Whether you’re ready to apply for your first CBILS loan, are eligible to take out a second facility or are seeking an alternative finance option, we’re here for your business.