The coronavirus outbreak has caused an economic shockwave unprecedented in modern times, and perfectly viable businesses at the beginning of March have been plunged into financial turmoil through no fault of their own.
We hope this will be an impact which will only last a matter of months, but the impact on cash flow for many businesses will be little short of catastrophic. Businesses need cash to get them over this devastating period, and they need it fast.
What is the Coronavirus Business Interruption Loan Scheme ?
CIBLS is a key plank of the government response. It is a state backed loan scheme aimed at supporting SMEs by providing access to finance facilities of up £5 million.
CBILS will be delivered by commercial lenders, including most major banks, and a number of asset-based lenders and specialist local lenders. The loans are 80% guaranteed by the state owned British Business Bank in order to give commercial lenders the support to lend to SMEs.
CBILS is be part of the support that banks are providing, they will also be providing “business as usual” financial solutions. In all cases it will be necessary to receive independent legal advice on the terms of the loan and any other facilities, and any security that needs to be provided.
If legal charges are required over property or other assets it is not unheard of for lawyers to take many weeks to complete the loan documentation, delaying access to much-needed funds.
How can Harrison Drury help
In response to this we have launched a dedicated CBILS Rapid Response team who can help businesses get their hands on their emergency loans faster, delivering advice on the loan agreement, and completing any necessary documentation in a matter of days.
Our working capabilities have been unaffected by the lock down due to our investment in a cloud-based IT network which allows our team to work remotely and deliver the service you need when you need it.
It is also important that lawyers are geared up during the lock down to deal with the delivery of independent legal advice, electronic signatures, witnessing of documents and video conferencing which our CBILS Rapid Response team is set up to facilitate.
Contact John Chesworth John.Chesworth@harrison-drury.com for further information