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The Help Available For Businesses During COVID-19

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Many businesses in the UK are experiencing financial hardship and uncertainty in the face of the COVID-19 epidemic. Through national lockdowns, company operating restrictions, and changes in demand, this is undeniably one of the most challenging times that business owners have endured for many years, if not decades.

In light of the exceptional circumstances, the government has introduced a scheme to encourage lenders to lend, backed by a government-guarantee. A coronavirus business loan is now available through BLG, further bolstering the business support you need.

The scheme is open to smaller British businesses (SMEs) that have an annual turnover of up to £45m. The coronavirus business loan is available for firms that are losing revenue and experiencing a disruption to their cash flow as a result of the epidemic. Your business can self-certify that it is being affected by the COVID-19 epidemic.

Your business must not have been certified as a ‘business in difficulty’ on or before 31st December 2019 to be eligible for a coronavirus business loan under this particular scheme.

Here we take a look at what the government scheme offers SMEs and property developers.

 

Coronavirus Business Interruption Loan Scheme

Up to £5m is funded by the Coronavirus Business Interruption Loan Scheme (CBILS) over a term of up to two years. The scheme covers lending fees and the first year’s interest, so your business will pay no fees or interest during the first twelve months of the coronavirus business loan.

It is important for businesses to understand that they are fully liable for the debt. Personal Guarantees are still required, but these have a 20% cap on the outstanding balance of the CBILS facility once proceeds from the sale are applied. Furthermore, a Principal Private Residence (PPR) cannot be used as a security to support the personal guarantee.

You must have a viable borrowing property development finance proposal for BLG to consider your application for a coronavirus business loan, and you will need to meet other standard lending criteria.

The CBILS programme has been extended by the government a number of times. The current key deadline dates are:

  • Loan application to be received by the lender – By end March 2021
  • Loan offer accepted by the borrower  – By end May 2021
  • First draw for development loan – By end August 2021

 

How BLG Can Help

BLG is a development finance specialist serving SME property developers. Accredited by the British Business Bank, BLG is an approved lender under the Coronavirus Business Interruption Loan Scheme.

You can register your interest for a coronavirus business loan and development finance, which BLG provides through CBILS, with flexible loan structures that support your individual needs and requirements. We are accepting applications from both new and existing customers.

BLG is proud to support UK businesses during the economic uncertainty that the coronavirus has caused. We can help your business navigate through the challenges ahead with a property-secured loan that is part of a government-backed scheme.

WHAT OUR CUSTOMERS SAY ABOUT US

"A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

“We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

“As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

“I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

"From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

“I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

“A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

“Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

“We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

“Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

“We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

“All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

“With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

“We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

“We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

“BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

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