CBILS bridging loans seeing unprecedented demand

british-business-bankThe Coronavirus Business Interruption Loan Scheme (CBILS) is available for SMEs through more than 100 accredited lenders across the UK.

Many of the lenders we work closely with have been approved by the British Business Bank to provide CBILS loans, including LendInvest, UTB, Fiduciam and Oaknorth.

CBILS loans for new developments have been very difficult to source and allocation across all lenders has now closed. We are still working with bridging lenders and term lenders who continue to offer CBILS loans.

The proposition for borrowers almost seems too good to be true: The government will pay the first 12 months’ interest, the lender’s arrangement fee, and the valuation and legal fees.

Who is eligible  – your business must:

  • Be UK-based in its business activity
  • Have an annual turnover of no more than £45 million
  • Have a borrowing proposal which the lender would consider viable, were it not for the current pandemic
  • Self-certify that it has been adversely impacted by the coronavirus (COVID-19)

CBIL “developer-exit” bridging loans

Where a developer is close to or has achieved practical completion at their development, we have been able to arrange CBILS developer exit bridging loans which refinance the borrower’s existing development facility. These bridging loans are up to 75% LTV so not only can they refinance the existing development facility, but additionally provide surplus cash to the borrower, all interest free. These loans are understandably in huge demand as it allows the borrower 12 months to market and sell their units with an interest free loan.

The loans would typically have a term of 12 months. The loans need to be credit approved before the end of November 2020; and as it stands the loan needs to legally complete by the end of January 2021.

For full details of CBILS loans that might be available to you please contact us on 0207 206 2500 or bridging@visionfinance.co.uk