CBILS Closing Deadline – Sooner than you think!
by David Marshall
The closing date for CBILS is currently 30th September 2020, but it would be foolish to leave submitting an application until then.
Having spoken to a number of CBILS accredited lenders it seems that recent announcements, referring to a two-month extension to 30th November, has caused some confusion.
To qualify for the scheme, Lenders must have logged applications with the British Business Bank by 30th September, this is not a name and number exercise, the Lender must be in possession of the fully detailed application and supporting papers.
While some lenders refer to 30th November as the last date for “approval”, others are working on the basis that the loan must be documented, preconditions satisfied (including security where applicable) and drawn by then.
BUT beware some lenders are considering closing to applications sooner. There are two factors at play, firstly the volume of applications being processed might overwhelm some lenders that they fear being unable to process the applications in time. Secondly, the funding available to some Lenders is finite and may not be sufficient to satisfy demand.
One last thought, although time is tight, avoid making simultaneous applications to multiple lenders to “hedge bets”. Lenders will be conscious of multiple credit searches being made and wary of borrowers seeking to draw on multiple applications – if resources are limited and time is tight, Lenders may well set such applications aside to concentrate on others.