Posted: 16 / 04 / 2020
We’re delighted to have assisted in the first new business approval and pay-out of a Coronavirus Business Interruption Loan Scheme in the UK.
The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses (SMEs) across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak. The British Business Bank operates CBILS via its 40 accredited lenders and the scheme provides the lender with a government-backed, partial guarantee (up to 80%) against the outstanding balance of the finance, which is only called upon if the borrower does not cover the outstanding balance.
The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied charges, whilst the business is only required to pay the capital element of the repayments during this period.
The UK’s first business to receive the government support – who have asked not to be named – are a family business which has been trading for 30 years making clothes for some of the world’s leading online fashion brands. The £150k will be crucial in allowing them to pay their staff plus suppliers for stock which was already on the water, ensuring that the supply chain is maintained whilst each person in the chain is on lockdown, paying for staff wages not only for our client but for several other businesses too.
George Settle of Sedulo Funding Solutions, who completed the business loan, said,
“It feels great to be the first person in the country to have assisted a business with the new government assisted loan. We were able to package the offering within minutes of the enquiry coming in and fair play to the lender, Newable, they reacted incredibly quickly to put the facility in place. I am looking forward to getting my second facility drawn down on the scheme and feel like I’ve got a good understanding of how the lenders want things presented to get through their process as quickly as possible.”
A representative from the supported business said,
“With us being in the clothing sector, we always have stocking opportunities and George is always on hand to help. Given the lockdown, we are due for a difficult couple of months and the funding provided will help us to remain committed to our staff during this tough time.”
The CBILS support is a welcome reprieve for businesses who are battling to stabilise, or even survive, in the wake of the COVID-19 outbreak. For other businesses who are also looking for support, whether it’s through business finance or schemes like CBILS, Funding Partner at Sedulo, Leyton Jeffs, added,
“With the mix of funding experts and accountancy advisory, we are very well positioned to assist clients in what is an ever-moving landscape. We have invested in putting together an internal task-force that has real expertise in all of the government initiatives, whether it be CBILS to furloughing and everything in between so that we are on hand to provide the help and advice that our clients have come to expect from us.”
Because of the longer timescales involved with approval for bank funding, we can work to ensure that we are looking simultaneously at CBILS application and alternative funding solutions to ensure that we can structure the right deal for you in the right timeframe for your business needs.