Until the end of March 2021, companies with an annual turnover of less than £45m were able to take advantage of the Coronavirus Business Interruption Loan Scheme (CBILS). CBILS was launched to give financial support to smaller businesses that have been affected by COVID19. CBILS is backed by the UK Government which provided a financial guarantee to the lender in the event of loan default, but the borrower still remained liable for the full extent of the debt. Under the scheme, the Government made a “Business Interruption Payment” to cover the first 12 months of interest payments and any lender fees due in this period, other eligibility criteria also applied.
From the 6th April the UK Government launched its new debt finance programme to support UK SME and business lending, the Recovery Loan Scheme (RLS). This scheme replaces CBILS and other lending programmes in place at the height of the pandemic. For more details about the RLS and how it might help your business get in touch with Primary Asset Finance to learn more.