What is the Coronavirus Business Interruption Loan Scheme?
How it works?
The CBILS is a new scheme that was announced by the Chancellor Rishi Sunak at the Budget 2020. It is designed to help businesses raise working capital through commercial loans during these uncertain times.
To help businesses access this funding scheme the government have announced the following key features:
- 80% guarantee – The government are providing lenders with an 80% guarantee against the cost of the finance, subject to cap per lender.
- No access fees for SME’s – There is no cost to the customer for accessing the scheme
- 12 months interest paid – A business interruption payment backed by the government will be paid to lender to cover the first 12 months of interest, meaning 12 months of lower monthly payments.
- Loan terms – Finance terms for asset finance and commercial loans are up to 6 years
- Up to 5 million loan facility – The scheme will support funding requirements up to 5 million on a maximum 6 year monthly repayment term
How we can help?
At Portman Asset Finance we have six lenders on our panel that is involved with the scheme which make us a great option to help you get the very best finance deal for your business. We are aware of the urgency in businesses getting the right contingency funding in place and we are trying our utmost to process as much as we possibly can.
To get started with the process, fill out the form at the top of the page and one of the account managers will get back to you as soon as we can.
Disclaimer: we do not have direct control on acceptance for interruption loans. The decision is made by the lender.
Support for self-employed
The government has announced another support package in the fight against the COVID-19 outbreak, this time aimed at helping self-employed workers.
The key features of the package are:
- Wage subsidy grant of 80% – Self-employed people who are making up to £50,000 profit per annum will qualify for a grant of 80% on monthly profits over the last 3 years up to £2500 a month.
- At least 50% of a self-employed persons income will need to have come from registered tax returns 2018-2019 that would have been filed in January. Anyone who missed the deadline will get an additional 4 weeks from now to get it done and still qualify.
- You can still work as you receive support.
- The money will be back-dated to March, however it will not arrive in people’s banks until June.
- The grants are taxable and should be declared on tax returns no later than January 2022.
- Business owners who pay themselves via a dividend will not be covered by the grant scheme.
If you believe you fit into this criteria you can find out more on how to apply on the gov.uk website.
How can Portman help me?
There will be many people who work for themselves who will not make the criteria for the government support package. If you are one of the following:
- Earning over £50,000 profits annually.
- A business owner who pays themselves in dividends.
- Require working capital for your business during these difficult circumstances.
We may be able to help you with funding through loans with a lender on the CBILS panel. Get in touch with us via the eligibility checker and we will get in contact with you at the earliest opportunity.