Can I still apply for a Coronavirus loan?

On 17 December 2020 the Chancellor extended the government-backed loan schemes (CBILS, CLBILS and BBLS) to 31 March 2021 for new applications.

Previously, the Chancellor's Winter Economy Plan on 2 November 2020 announced that the following loans would remain available until 31 January 2021 for new applications:

• Bounce Back loan Scheme (BBLS)
• Coronavirus Business Interruption Loan Scheme (CBILS)
• Coronavirus Large Business Interruption Loan Scheme (CLBILS)
• Future Fund convertible loans

The Bounce Back Loan Scheme was adjusted in November to allow those businesses who have borrowed less than their maximum (i.e. less than 25% of their turnover) to top-up their existing loan. Businesses will be able to take-up this option shortly; they can make use of this option once.

Businesses which have not previously applied for one of these loans, may be reconsidering doing so as we approach the winter with the prospect of more Covid-19 restrictions.

If you are trying to gauge whether your business needs the funding, you can speak to one of our corporate finance team to discuss the issue. They can advise on the most appropriate funding avenue to pursue and the level of funding that may be required.

See also our Capitalise service mentioned below.

How do the Covid loans differ?

Bounce Back loans - 

Unlock £2,000 to £50,000, depending on turnover

• For SMEs, micro businesses and other businesses.
• No set-up fees and first 12 months of interest payments covered by government.
• Term loan repaid over six years.
• No repayments during the first 12 months.

More information is available here.

Coronavirus Business Interruption Loan Scheme (CBILS) - 

Unlock up to £5m, depending on turnover

• For smaller businesses with a turnover of less than £45m.
• Business loans, overdrafts, invoice finance and asset finance available.
• First 12 months of interest and lender-levied fees covered.

More information is available here.

Coronavirus Large Business Interruption Loan Scheme (CLBILS) - 

Receive finance of up to £200m

• For larger businesses with a turnover of more than £45m.
• Business loans, overdrafts, invoice finance and asset finance available.
• Repayment terms of up to three years.

More information is available here.

Future Fund convertible loans - 

Convertible loans from £250,000

• From £125,000 to £5m in government support.
• Third-party investors must at least match government support, with no maximum investment limit.
• Companies need to have previously raised £250,000+ in equity investment.

More information is available here.

Capitalise

Bishop Fleming has a team of fundraising specialists ready to advise clients through Coronavirus. As a partner of Capitalise, we have access to 100+ lenders to provide businesses with the opportunity to secure the right kind of funding. Our Capitalise team will support you through all stages of the funding process.

Find out more about raising finance through Capitalise here.

Check out our Business after COVID-19: Transition Knowledge Hub for more guidance and advice on managing the pandemic.