The Chancellor clearly must have read my LinkedIn post yesterday as the scheme will now be OPEN TO ALL VIABLE BUSINESSES AFFECTED BY COVID19 – a key and necessary improvement.
Other changes include:
– No lender on the scheme can take a personal guarantee for loans up to £250k
– For facilities above £250k, the lender can still request a personal guarantee but any recovery under that guarantee will be capped at 20% of the outstanding balance after proceeds of any business assets have been applied (NB Still before the government guarantee though)
– Scheme will be extended to businesses with a turnover up to £500m and the loan amount has increased to £25m for these larger firms
The business still needs to approach one of the funders with a clear plan and an explanation of what they need and for what purpose and this has to be backed up by cashflows and assumptions and an explanation of what actions have been taken thus far.
We at Snowball Group are experts at business finance and are able to work with businesses to produce the appropriate information and the right package to ensure a smooth and efficient way through the process and we will negotiate directly with the funder.
#cbils #businessfinance #funding