United Trust Bank (UTB) has been approved for accreditation by the British Business Bank as a lender for the Government-backed Coronavirus Business Interruption Loan Scheme (CBILS).
CBILS, delivered through British Business Bank accredited lenders, is designed to support the continued provision of finance to smaller businesses (SMEs) in the UK during the Covid-19 outbreak.
The scheme enables lenders to provide facilities of up to £5m to eligible smaller businesses who are experiencing lost or deferred revenues, leading to disruptions to their cashflow, as a result of the Coronavirus pandemic.
Under CBILS, UTB can now offer the following new facilities:
- UTB CBILS Junior Debt Term Loans
- UTB CBILS Sales Period Finance Term Loans
- UTB CBILS Investment Finance Term Loans
The Bank will also begin offering CBILS Asset Finance facilities later this month.
These loans can share security with the existing UTB product suite, thereby increasing facilities to £25m.
Designed specifically to assist SME house builders, developers and investors, hey can be used for property development, investment or bridging facilities across residential, commercial and mixed-use schemes.
In the absence of the CBILS, the SMEs for whom these facilities are designed would ordinarily have difficulty raising such finance as they may fall outside of UTB’s and other funders’ normal credit risk lending appetite. With all products the borrower remains responsible for the repayment of the full value of any facility supported by CBILS.
Noel Meredith, executive director of United Trust Bank, said: “The Covid-19 pandemic has had a profound effect on the UK economy and its businesses. Many SME house builders and developers are suffering from the consequences though these may take time to become fully apparent.
“Construction programmes have extended, supply chains are disrupted, sales markets are uncertain in both in terms of transaction volumes and value. All of these create additional costs and funding needs at a time when funding markets are disrupted and lenders are being cautious due to overwhelming uncertainty.
“United Trust Bank is experienced through the cycle lender with a deep understanding of the challenges faced by SME house builders, developers and property investors and what they need from a specialist finance partner in uncertain times. These CBILS facilities are designed to enable new and existing UTB customers to keep building, developing and investing in property across England and Wales.
“The UK is facing deep economic uncertainty, but we must continue to tackle the nation’s growing housing shortage. SME house builders, developers and investors have a significant and important role to play in that endeavour and United Trust Bank will continue to support them with innovative funding solutions.”
Further details can be found on UTB’s website here