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CBILS & BBLS Update

As we carefully transition from the full lockdown restrictions that we had become accustomed to the next phase (I’ve refrained from referring to a ‘new normal’ for fear of a QI-style klaxon going off), businesses continue to adapt and cope with the disruption caused by the pandemic.

The Coronavirus Business Interruption Loan Scheme (CBILS) has been covered previously by my colleague Iain McDougall (https://mbmcommercial.co.uk/Latest-Blogs/Blogs/The-coronavirus-business-interruption-loan-scheme-cbils-a-lifeline-thrown-too-late.html).  However, it’s worth noting that businesses can still make applications for funding via commercial banks and we still see businesses successfully secure funding via CBILS. It’s also worth noting the significant uptake that CBILS has had since Iain posted his blog on 24 April, with the recent figures as follows:

  • Total number of applications: 122,885
  • Total number of facilities approved: 60,409
  • Total value of facilities approved: £13.68bn

Along with CBILS, there are other schemes worth looking at to assess how the wider business landscape is coping, including the Bounce Back Loan Scheme (BBLS), covered back in May by my colleague Kayleigh Palmer (https://mbmcommercial.co.uk/Latest-Blogs/Blogs/Bounce-back-loan-scheme-bbls-a-quick-guide.html). The BBLS was set up as a more straightforward alternative to CBILS, with a faster application process for Companies who did not require the larger borrowings available under CBILS. Recent figures for BBLS are as follows:

  • Total number of applications: 1,430,017
  • Total number of facilities approved: 1,174,854
  • Total value of facilities approved: £35.47bn

As the figures above demonstrate, there has been a tremendous volume of BBLS applications, with a large proportion being successful, although both BBLS and CBILS appear to have slowed slightly in recent weeks. As a result, the value of funding granted under BBLS is over double that of CBILS. As with CBILS, the figures appear to show a steady stream of applications but, unlike CBILS, the applications appear to have slowed slightly in the last month.

Whilst we are hopefully turning the corner, the number of applications for both CBILS and BBLS is still at a significant level so it appears there is still a need for these government backed schemes to remain in place for now. Interestingly, HM Treasury will no longer report CBILS and BBLS applications on a weekly basis, instead publishing the information monthly which may indicate that they are anticipating a drop-off in applications.

At MBM we have advised businesses on both CBILS and BBLS applications, so please contact Craig Edward or any other member of the team should you wish to discuss further.

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