Page 8 - SME Toolkit: The Star Covid-19 Edition

8 THESTAR www.thestar.co.uk Wednesday,May27,2020
FINANCE
in association with
Finance for Enterprise has supported thousands of businesses in the Sheffield City Region
Secure that financial lifeline
Alistair Sutherland, right, MD of Original Recipes and David Lee, Investment Manager, Finance For Enterprise. Below Andrew Austwick MD of FFE.
Borrowing money is a de- cision that should never be taken lightly, but as many businesses strug- gle to deal with the impact of COVID-19, could two new Government guaran- teed loan schemes offer
a much-needed lifeline to
the SME business commu-
nity?
Designed to support busi- nesses affected by the cor- onavirus pandemic, the Bounce Back Loan Scheme (BBLS) and Coronavirus Business Interruption Loan Scheme (CBILS) were an- nounced by Chancellor Ri- shi Sunak earlier this year and provide businesses with access to a range of different lending packages.
There are differences between the two schemes and Andrew Austwick, managing director of Don- caster-based Finance For Enterprise, believes busi- ness owners should think carefully about choosing the right loan:
“Businesses looking to
secure lending have a choice: they can apply for a BBLS or CBILS loan, but not both. Historically, many small businesses have struggled to access financial support from traditional high street lenders, but the Chancel- lor has set clear instruc- tions for lenders to support companies which have been affected by the pandemic.
“Essentially, the main differences between the two loan schemes concern
the amount of money which businesses can borrow and the application process itself.
“BBLS loans are capped at £50,000 and linked to the past financial performance of the business. Under the scheme, businesses can apply to borrow up to 25 per cent of their annual turno- ver achieved during 2019. The streamlined application process is intended to ensure a swift approval process.
“The CBILS loan scheme
provides businesses with access to larger loans, plus options to secure additional forms of support, for example invoice finance, asset finance and overdraft facilities. Under CBILS, businesses can apply for loans from £50,001, up to a maximum of value £5 million.
“Terms and support avail- able through CBILS vary from lender to lender. For exam- ple, the maximum CBILS loan value available from Finance
For Enterprise is £250,000. Due to the larger amounts of money involved, CBILS loan applications also involve a slightly longer process than BBLS, and consider not only the previous financial per- formance of the business,butalso
future cashflow projections and business plans.”
The two
schemes are
delivered by
a number of
financial insti-
tutions. A full list of accredited BBLS and CBILS lending providers can be accessed via the British Busi- ness Bank website: https:// www.british-business-bank. co.uk/
Next month, Finance For Enterprise will celebrate its 35th Anniversary and during that time the not-for-profit lending provider has stepped in to support thousands of businesses throughout the Sheffield City Region, ena- bling them to secure the vital financial support needed.
Among the many busi- nesses which Finance For Enterprise has helped is Chesterfield-based Orig- inal Recipes. They resur- rected a range of spreads
and pates, using recipes from the 1920s.
Since first securing fund- ing from Finance For “Businesseshaveachoice; Enterprise
theycanchoosetoapplyfor a BBLS or CBILS loan, but notboth”
in 2017, the company has expanded and relocated to new, larger prem- ises with the help of the lending provided. Finance For Enterprise is committed to helping busi- nesses across the Sheffield City Region access the finan- cial support needed to nav- igate their way through the
COVID-19 pandemic;
CONTACT
Finance For Enterprise Oaks House, Heavens Walk, Doncaster, DN4 5HZ
Tel: 0333 014 3455
WANT A BBLS LOAN? CONTACT YOUR BANK IN THE FIRST INSTANCE
UK firms suffering from cashflow disruptions and lost revenues caused by COVID-19 and the nec- essary lockdowns enforced by the government, can access support, up to a maximum of £50,000, from their banks in the form of The Bounce Bank Loan Scheme, or BBLS.
BBLS loans are available from a few high street banks. To find out which can support your business, visit the British Business Bank website. Please note, Finance For Enterprise cannot provide lending
under the BBLS programme, however, it can provide lending via the Coronavirus Business Inter- ruption Loan Scheme, or CBILS. Businesses are eligible to apply for a CBILS loan with Finance
For Enterprise if the loan is for business purposes, if the company is based in the UK, if 50 per cent of income earned is through trading activity, and if the required loan
is less than £250,000. For more information visit: https://finance- for-enterprise.co.uk/cbils/ or call the Finance For Enterprise team.
35 years
Andrew Austwick