The company: A residential and commercial property developer, specialising in the development of commercial and residential properties since 1997.
Funding: They received funding from BLG under the Coronavirus Business Interruption Loan Scheme.
Purpose: To support the business as a result of the COVID-19 outbreak.
Before the outbreak of COVID-19, they had secured an agreement with lenders to provide development funding for its planned residential developments. However, this funding was withdrawn as a direct result of the impact of COVID 19.
The availability of development funding on commercially acceptable terms was essential for the planned residential developments to go ahead. Without a solution, the planned residential developments would have had to be put on hold indefinitely until development funding was available on commercially acceptable terms.
Solution: Coronavirus Business Interruption Loan Scheme (CBILS).
BLG supported the developer through the application process to secure funding in under three months.
They said, “If the coronavirus business interruption loan scheme had not been available to us, it would have had a negative impact on the business overall, a reduction in turnover and potential profits, reduced growth, and we would have been forced to consider redundancies to existing staff.”
Asked what advice he would give to other businesses applying for a Coronavirus Business Interruption Loan Scheme backed loan he said, “Provided you can meet the qualifying criteria, it is an excellent method of securing funding on commercially acceptable terms.”
The funding from BLG, supported by the Coronavirus Business Interruption Loan Scheme, has helped the company survive the COVID-19 outbreak. They explained, “The scheme enabled us to continue with our planned residential development, which is a new venture for the business, and helped us prevent a potentially very difficult situation.”
“It was a positive experience. We found the process straightforward and easily understood, and the staff at BLG clarified any queries we had,”
Conclusion: The Coronavirus Business Interruption Loan Scheme presents a route for smaller businesses affected by coronavirus to acquire financial support.