In the Budget 2020, the Chancellor announced that a ‘Coronavirus Business Interruption Loan Scheme’ (CBILS) would temporarily replace the Enterprise Finance Guarantee (EFG). As an accredited lender under the British Business Bank’s EFG programme, Compass Business finance will be offering asset finance via CBILS to smaller businesses, predominantly in the manufacturing sector.
CBILS provides lenders with a Government-backed guarantee for up to 80% of the outstanding balance of eligible facilities, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’. It supports facilities of between £1,000 and £1.2m to smaller businesses that are viable but unable to obtain finance from their lender due to having inadequate security to meet the lender’s normal credit requirements.
Mark Nelson, director of Compass Business Finance, said: “These are unprecedented times and amid the uncertainty, CBILS is one way in which we can extend finance to companies who may not otherwise have the required security. There are also many other finance options available to businesses who may need to release additional funds at this time or over the coming months.’
The British Business Bank is in the process of defining and agreeing the scheme’s details, specifications and eligibility.