Time is fast running out for those who have not yet applied for a Coronavirus Business Interruption Loan (CBIL).
Although the deadline for submission of CBILs applications is now 30th November, the critical point to note is that loans must be processed (i.e. ready to draw down) by 31st December 2020. That’s leaves only a very narrow window remaining.
Please also be aware that borrowers who submit applications close to the deadline will be taking a big risk and may be disappointed if overstretched lenders cannot assess and process their applications in time. CBIL applications are not straightforward, which is something I have written about before (please see CBILS Important Pointers) so I think it is unlikely that lenders will be able to process all of them in time. In fact, some lenders have already closed their doors to new CBIL applications.
It goes without saying that liquidity is extremely important at times like this, with a pandemic in full swing and Brexit looming, when nobody really knows what’s around the corner. So if you are thinking of applying (whether that is for a new CBIL or for a top up to an existing facility) then I urge you to get a move on.
Remember that if you do apply, it is extremely important to get the application right first time, and to submit all the required supporting information at the same time. We are here to help if you need it – at the time of writing we have a 100% success rate with CBIL applications, so don’t hesitate to pick up the ‘phone if you would like to speak to us.
On a technical point: businesses that already have a Bounce Back Loan (BBL) can still apply for a CBIL but they must repay it as part of the transaction. For example: if a business has a BBL of £50,000 and requires £200,000 of additional liquidity, then it must apply for a CBIL of £250,000, of which £50,000 will be used to repay their BBL.