Funding 365 confirms that it has received a further increase in its British Business Bank Coronavirus Business Interruption Loan Program allocation to support small businesses affected by Covid-19.
The bridging loan specialist said all remaining CBILS applicants “should contact them as soon as possible” before the March 31 deadline.
In last week’s Budget, Chancellor Rishi Sunak confirmed that the CBILS will be replaced on April 6 by the Recovery Loan Scheme, under which interest and fees must be paid by the borrower upfront.
365 Financing, under CBILS, provides unregulated bridging loans of up to £ 3million up to a maximum of 65% of the loan value for up to 18 months, secured primarily on properties residential in England and Wales.
Funding 365 Director Paul Weitzkorn said: “It has become clear that a large number of small businesses in the real estate industry have been – and still are – negatively affected by the ongoing pandemic.
“With less than four weeks of the CBILS deadline, we urge businesses and their brokers to contact us as soon as possible to see if we are able to support them during this time.”
To be eligible for CBILS, a small business must be based in the UK, with a turnover of no more than £ 45million per year.
It should not be viewed as a “struggling business” and should have a loan proposal that, without the current pandemic, would be considered viable by the lender.
Loans approved under CBILS will see the government make a business interruption payment to cover the first 12 months of interest payments and any charges levied by the lender. However, the borrower remains 100 percent responsible for the debt.