Further details have today emerged on the CBILS support that is available.
Key aspects include:
The following criteria are key for eligibility:
In addition to the CBILS facility, the Bank of England has launched the separate Corporate Financing Facility (CCFF). This facility is for larger organisations that make a material contribution to the UK economy and that had, prior to being affected by Covid-19, a short or long-term rating of investment grade, or financial health equivalent to an investment grade rating. Further details to follow.
It is apparent that there is currently a gap in coverage for mid market businesses that have Turnover of £45m+ but are sub investment grade – this has been ‘flagged’ and a response awaited.
Access to the CBILS facility should be considered in conjunction with the range of other measures that the government has announced and as part of your own Covid-19 Plan that you are putting in place. Seeking professional advice and early engagement with key stakeholders, including funding partners is paramount. We remain in active dialogue with all banks, alternative providers of finance, the British Business Bank and the CBI, amongst others.
Gambit Corporate Finance has a dedicated debt advisory team. We would be happy to speak with any companies that have concerns and wish to understand the options available to them, including working to finalise a Covid-19 Plan and CBILS application.
Jason Evans, Partner of Gambit Corporate Finance LLP and leads the Debt Advisory Team