Funding 365 has been accredited as a new lender under the Coronavirus Business Interruption Loan Scheme (CBILS) by the British Business Bank.
Delivered through British Business Bank accredited lenders, CBILS is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak. The scheme enables lenders to provide facilities of up to £5m to smaller business across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.
Under the scheme, Funding 365 will provide unregulated bridging loans up to 65% LTV for up to 24 months. These loans will be secured on a first charge basis against residential properties in England and Wales.
For approved loans under CBILS the Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied charges. The borrower remains 100% liable for the debt.
To be eligible for a facility under CBILS an SME must be UK based in its business activity, with turnover of no more than £45m per year. It must not be considered a ‘business in difficulty’ and must have a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender.
On 2 November the Government announced that CBILS will be extended until 31 January 2021.
Paul Weitzkorn (pictured), director at funding 365, said: “CBILS is a lifeline for many SMEs who are experiencing lost or deferred revenues as a result of Covid-19. We’re delighted to have been accredited as a CBILS lender by the British Business Bank and to be able to support UK businesses in navigating their way through the pandemic.”