- 3rd June 2020
- Posted by: DMM
- Category: Development Finance
The government announced support for developers through the Coronavirus Business Interruption Loan Scheme (CBILS), but what is CBILS for developers and does it apply to you?
Following the March 11 Budget announcement, the British Business Bank are offering the CBILS scheme through supporting banks as an initiative to help UK businesses affected by Coronavirus.
What is CBILS for Property Developers?
- Borrow up to £5 million
- Terms of up to 5 years
- The government guarantees 80% of the finance
- Up to 70% LTGDV
- Arrangement fee paid by the government
- Very competitive interest rates that are paid by the government for the first 12 months
- The borrower is liable for the debt as normal
What is CBILS for Property Developers and How to Apply?
There are number of institutional lenders that are providing the CBILS scheme and each will have their own particular criteria, but the following will be key requirements:
- You are a Limited Company or a Limited Liability Partnership
- You are a UK-based business with annual turnover up to £45 million
- You can demonstrate that you have been adversely impacted by the Coronavirus with your project paused, slowed or otherwise delayed
- Up to a maximum term of 5 years
- You require a Property Development Loan or Commercial Mortgage for business purposes
- You have not been classed as a “business in difficulty” on, or before 31 December 2019
- Your business has not been classified as a ‘business in difficulty’ on, or before, the 31st December 2019
Please note that the government may change the criteria but you can view the latest information here. Each CBILS lender has put in place their procedures for providing the government scheme and demand has been high with a deadline of 30th September 2020 to apply.
If you are a property developer that has been asking what is CBILS and whether it may apply to you, then contact us today on 0207 096 2003 to discuss your project. Developer Money Market is an independent finance brokerage specialising in property development and property investment funding.