NACFB COVID-19 Response Hub

Welcome to the National Association of Commercial Finance Brokers’ (NACFB) COVID-19 Response Hub

Below you will find coronavirus-related information and guidance relevant for:

    • Small to medium-sized UK businesses (SMEs)
    • Commercial finance intermediaries (brokers)
    • The wider lending community (including lenders)

The Treasury has set out a package of targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19.

COVID-19 support

Are you a business seeking help?

Partner with a recognised business broker today. The NACFB’s UK-wide network of commercial finance brokers can help you find your business funding solution. Our not-for-profit trade body hosts a searchable broker directory through our free findsmefinance platform.

All Members on the platform are authorised and regulated by the Financial Conduct Authority (FCA). In addition, Member brokers of the NACFB adhere to an industry recognised Code of Practice.

NACFB’s Members provide expert financial guidance with access to at least 140 business lenders. They are ready and able to marry their experience with an approach that can save your business both time and money.

findsmefinance

Are you a commercial finance broker?

CBILS for brokers 

In April, the chancellor hannounced that the British Business Bank (BBB) will manage the Coronavirus Business Interruption Loan Scheme (CBILS).

  • The scheme is being delivered through a range of over 100 accredited lenders (70% of which are NACFB Patron lenders)
  • CBILS  provides the lender with a government-backed guarantee against the outstanding facility balance
  • CBILS facilities are available from £500 up to £5 million:

Scheme features

  • No personal guarantees for facilities under £250k: Personal guarantees of any form cannot be taken under the scheme for any facilities below £250k.
  • Personal guarantees for facilities above £250k: Personal guarantees may still be required, at a lender’s discretion, but recoveries under these are capped at a maximum of 20% of the outstanding balance of the CBILS facility after the proceeds of business assets have been applied. A Principal Private Residence (PPR) cannot be taken as security to support a personal guarantee or as security for a CBIL backed facility.
  • Security: For all facilities, including those over £250,000, CBILS can now support lending to smaller businesses even where a lender considers there to be sufficient security, making more smaller businesses eligible to receive the business interruption payment.

Existing scheme features

  • Up to £5m facility: The maximum value of a facility provided under the scheme is £5m, available on repayment terms of up to six years.
  • No guarantee fee for SMEs to access the scheme: No fee for smaller businesses. Lenders will pay a fee to access the scheme.
  • Interest and fees paid by Government for 12 months: The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.
  • Finance terms: Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
  • 80% guarantee: The scheme provides the lender with a government-backed, partial guarantee (80% gross) against the outstanding facility balance, subject to an overall cap per lender.
  • Principal Private Residence (PPR) – A borrower’s/guarantor’s PPR cannot be taken as security to support a Personal Guarantee or as security for a CBIL backed facility.
  • The borrower always remains 100% liable for the debt.

Eligibility criteria

Smaller businesses from all sectors can apply for the full amount of the facility. To be eligible for a facility under CBILS, a smaller business must:

  • Be UK based in its business activity, with turnover of no more than £45m per year.
  • Have a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender.
  • Self-certify that it has been adversely impacted by the Coronavirus (COVID-19).

Documents the lender will likely require

  • MI to end of year 2019
  • 2017-2018 & 2018-2019 accounts
  • Assets & Liabilities
  • Details of latest payroll e.g. breakdown of monthly costings
  • Three months latest business bank statements
  • Explanation of how the funds will be used

Brokers should note that the borrower will remain 100% liable for the debt.

More about CBILS
Join the NACFB

Are you a lender in the commercial finance sector?

Become a CBILS accredited lender

Representatives from the British Business Bank have confirmed directly to the NACFB that they are still accepting lender applications for their Coronavirus Business Interruption Loan Scheme (CBILS).

Applications are being processed and we encourage our lender Patrons to explore the scheme. Interested funders can:

  • Download a guidance document here.
  • Complete an Expression of Interest Form here
  • Submit their completed BBB Accreditation to this dedicated mailbox.