Coronavirus Business Interruption Loan
If you have recently applied for a loan under the Coronavirus Business Interruption Loan (CBIL), you may have experienced some difficulty.
It appears that most lenders are not keen to offer CBILs, as less than 1% of applications have been successful.
There have been reports that:
Lenders have tried to steer businesses towards their own commercial loans which attract higher fees/ interest and are not guaranteed by the government
Lenders have only been offered a CBIL if the business has been refused a commercial loan or increased overdraft
Banks have insisted that businesses must offer a personal guarantee on CBILs (main home is protected but other personal assets are not)
If a CBIL has been offered, they can be charged interest rates of up to 30% (even though banks can currently borrow at close to 0%)
Yesterday the chancellor announced that there will be changes made to the CBIL scheme which should make the application process easier…
Applications will not be limited to businesses that have been refused a commercial loan.
Banks will be banned from asking business owners to guarantee loans up to £250k.
So if you have already unsuccessfully applied for a loan, you may want to try again.
For more information, go to: