CORONAVIRUS LOAN SCHEMEs

Support for your business

During these unprecedented times, businesses up and down the UK are facing significant challenges as revenues dry up and cashflows come under pressure.

We want to reassure our commercial clients that we are here to help support their businesses whenever possible, and particularly when they need us most.

One of the most important ways for us to do this is to make available debt facilities as supported by the government for UK based businesses. We are now accredited with the British Business Bank for the 2 main schemes, as follows:

  • Coronavirus Business Interruption Loan Scheme (CBILS) – for small to medium-sized UK based businesses with turnover up to £45m p.a.
  • Bounce Back Loan Scheme (BBLS) – for UK based businesses requiring smaller Covid related debt support between £2,000 and £50,000. Top-up now available subject to eligibility. 

 

 

Coronavirus business interruption Loan Scheme (CBILS)

The Coronavirus Business Interruption Loan Scheme is now closed to new applications

Please note, applications received by 23.59 on 31 March 2021 can still be processed through to 31 May 2021.

If you have a query about CBILS, or wish to discuss an outstanding application, please contact your banker.


WHAT IS CBILS?

CBILS is a government-backed scheme that provides financial support to viable SMEs that are losing revenue and experiencing cashflow pressures because of the coronavirus. The loans are available for terms of up to six years and include a standard 12-month capital repayment holiday. The first 12 months are interest free as the government pays the interest for you during that time.

The scheme is designed to support businesses that were trading successfully before coronavirus but now face difficulty as a result of the current disruption.

The UK government provides banks with a guarantee for 80% of the loan, but the borrower remains liable for 100% of the outstanding debt.

 

HOW LONG DO I HAVE TO PAY THE LOAN BACK?

CBILS loans are available for terms of up to six years and include a standard 12-month capital repayment holiday. The interest over the first 12 months is paid by the government, and there is no penalty for early repayment.

 

CAPITAL REPAYMENT HOLIDAY AND INTEREST-FREE PERIOD

The UK government will pay interest for the first 12 months of the agreement. Also, you do not have to make any capital repayments during the 12-month capital repayment holiday. This means more capital will be outstanding for longer so you will pay more interest over the full term than if you did not take the capital repayment holiday. But you can make extra capital repayments which would reduce the overall interest costs over the full term.

 

WHAT OTHER FORMS OF GOVERNMENT SUPPORT ARE AVAILABLE?

See the government support website for details.


IS MY BUSINESS
ELIGIBLE?

To be eligible for CBILS, your business must:

  • be UK-based, with group turnover of no more than £45m per annum
  • generate more than 50% of its turnover from trading activity
  • be applying for business purposes and primarily to support trading in the UK
  • operate within an eligible industrial sector – there are a considerable number of sectors eligible to participate but a small number are not
  • be considered viable over the longer term, notwithstanding any coronavirus impacts over the short-to-medium term

For more information, please visit the British Business Bank website

 

Please note that Adam provides business banking facilities to the private clients of Adam.

Whilst we are doing everything we can to help all of our clients, given the huge demand for CBILS from our existing business clients, we are unfortunately unable to take applications from new commercial clients at the present time.

We will reassess our capacity regularly, but if your current bank is offering CBILS, it will be faster for you to apply through them.

 

 

BOUNCE BACK LOAN SCHEME (BBLS)

Coronavirus business support

The Bounce Back Loan Scheme is now closed to new applications.

BBLS applications received by 23.59 on 31 March 2021 can be processed through to 31 May 2021. 

If you have a query about BBLS, or wish to discuss an outstanding application, please contact your banker.

 

What is BBLS?

The Bounce Back Loan Scheme is a government initiative to support small and medium-sized businesses that are losing revenues because of the coronavirus.

The UK government provides banks with a guarantee for 100% of the loan, but the borrower remains liable for all the debt.
 

How much could I borrow?

We could provide BBLS supported loans for amounts from £2,000 to £50,000 (up to a maximum of 25% of your business turnover).

The amount of the loan should be based on your extra liquidity needs as a direct result of the impact COVID-19 has had on your business.
 

How long do I have to pay the loan back?

BBLS are available for a fixed, six-year loan term. Interest is fixed at 2.5% for the duration of the loan, with no early repayment fees if you want to pay it off sooner.

A 12-month capital repayment holiday is automatically applied at the start of the loan, but you can choose to make repayments at any time. If you decide to take the capital repayment holiday, it means more capital will be outstanding for longer, so you will pay more interest over the full term. But you can make extra capital repayments which would reduce the overall interest costs.

The loan interest is paid by the government for the first 12 months, then by you for the remainder of the loan term.

 

PAY AS YOU GROW

  • The Government has announced Pay As You Grow options for Bounce Back Loan borrowers to help businesses get back to regular trading. Pay As You Grow could give you more time and flexibility to pay back your loan.
  • Pay As You Grow options will be available to you once you start to repay your Bounce Back Loan, from 12 months after it was first approved.
  • Using these options won’t affect your credit score, though it may influence how we assess your creditworthiness in the future and your loan may cost you more overall.

The options available to you when you are due to make your first payment after 12 months are as follows:

1. If you expect to be in a better position to repay in the future:

a) You could reduce your monthly repayments for six months by paying interest only.

  •  This option is available up to three times during the term of your Bounce Back Loan.

OR: 

b) You could take a payment holiday for six months.

  • This option is available once during the term of your Bounce Back Loan.

 

2. If you’re only able to repay a smaller amount:

You could request an extension of your loan term from six years to 10 years at the same interest rate of 2.5%.

If you’re considering this option you should think carefully about your ability to repay over a longer timeframe, taking into account such things as if you intend to cease trading or retire within the revised term of your Bounce Back Loan.

PAYG will be available from the 19th April, please contact your banker if you have any questions in the meantime.

Please note for all three options that the total amount you owe will go up. This is because your interest costs increase as you’re repaying your loan over a longer period.

You can use options 1 and 2 together if you need to.

 

Important information:

The Bounce Back Loan Scheme is provided through a government scheme and does not benefit from the same level of consumer protection as our other loans. If you are in any doubt about whether this loan is right for you, you should take legal advice.

The Bounce Bank Loan Scheme (BBLS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS). British Business Bank plc is wholly owned by HM Government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). Full details on BBLS and the list of participating lenders can be found on the British Business Bank website: www.british-business-bank.co.uk

 


Financial institutions

There are no restrictions under the scheme rules relating to financial institutions applying for a bounce back loan.  However, ring fenced banks are prohibited from entering into certain types of transactions with financial institutions. Broadly speaking, the term “financial institution” includes investment firms, alternative investment fund managers, structured finance vehicles, credit institutions, certain types of insurance companies, UCITS funds and financial holding companies. 

Ring fenced banks include Barclays Bank (UK) PLC, Clydesdale Bank PLC, Virgin Money PLC, HSBC Bank (UK) Limited, Lloyds Bank Plc, Bank of Scotland Plc, National Westminster Bank Plc, Royal Bank of Scotland plc, Coutts & Company, Ulster Bank Ltd, Santander UK Plc and TSB Bank plc.

In line with the requirements of the Bounce Back Loan Scheme, we set out below information in respect of our relationship with you and matters we have agreed to address during the life of your Bounce Back Loan:

  • We will monitor your repayment record during the life of your Bounce Back Loan and take action to help you where there are signs of actual or possible repayment difficulties.
  • If we identify that you might be vulnerable, we will make appropriate adjustments to ensure that your circumstances are accommodated throughout the duration of your Bounce Back Loan.
  • If you default under your Bounce Back Loan, we will give you a reasonable period to remedy any breach and we will not treat the default as an event of default if it is remedied within this period.
  • We will not require you to pay any fees of any description (including on default) or any default interest (except if the Bounce Back Loan is not repaid when due we may continue to charge interest at 2.5% per annum until such time as it is repaid).
  • We will give consideration to your information needs once you have a Bounce Back Loan with us and provide information to you in a way which is clear, fair and not misleading.
  • We will provide you with information on your right to repay a Bounce Back Loan before your Bounce Back Loan is binding on you.
  • We will provide you with information on the risks of non-repayment of your Bounce Back Loan, including the impact on your credit file before your Bounce Back Loan is binding on you.

We also agree to provide you with the following information during the life of your Bounce Back Loan:
   
1. timely, clear and adequate information that will help you to understand that, if you fail to make payments under your Bounce Back Loan, the amount missed, what can be done to remedy, in what timescales, and the impact (if any) on your future repayments;

2.  if you default, we will give you information about any proposed action we might take in respect of your Bounce Back Loan, prior to taking such action;

3. regular information about your Bounce Back Loan (on at least an annual basis) in the form of a statement setting out details of the payment transactions on the Bounce Back Loan during the period since such information was provided (or the Initial Drawdown Date, if no such information has been provided previously) and amounts outstanding under the Bounce Back Loan; and

4. information on options available to you for help and assistance, including sources of free independent advice.

 

 

BOUNCE BACK LOAN SCHEME (BBLS) LOAN TOP-UPOUNCE BACK LOAN SCHEME (BBLS)

The Bounce Back Loan Scheme (BBLS) is now closed to new applications, including applications for Top-Ups

BBLS applications received by 23.59 on 31 March 2021 can be processed through to 31 May 2021. 

If you have a query about BBLS, or wish to discuss an outstanding application, please contact your banker.

 

BOUNCE BACK LOAN TOP UP

  • If you have borrowed less than 25% of the annual turnover you stated on your original Bounce Back Loan application form, you are eligible to apply for a Top-Up. The combined value of your original loan and Top-up cannot exceed 25% of your originally stated turnover, and is subject to an overall cap of £50,000. You may only apply for a Top-Up once
  • The minimum borrowing amount for a Top-Up is £1,000
  • An interest rate of 2.5% per annum applies on the Top-Up. This is the same interest rate which applies to your existing Bounce Back Loan
  • Government covers the interest on the Top-Up up to the date on which your original interest free period on your existing Bounce Back Loan expires (i.e. 12 months after the initial draw-down of the original loan amount)
  • No capital repayments are required up to the date on which your repayment holiday on your existing Bounce Back Loan expires (i.e. 12 months after the initial draw-down of the original loan amount)
  • The term of the Top-Up will expire on the same date as the term of your original Bounce Back Loan. Top-up now available subject to eligibility. 

Important Information

The Bounce Back Loan Scheme is provided through a government scheme and does not benefit from the same level of consumer protection as our other loans. If you are in any doubt about whether this loan is right for you, you should take legal advice.

The Bounce Bank Loan Scheme (BBLS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS). British Business Bank plc is wholly owned by HM Government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). Full details on BBLS and the list of participating lenders can be found on the British Business Bank website: www.british-business-bank.co.uk

 


Financial institutions

There are no restrictions under the scheme rules relating to financial institutions applying for a bounce back loan.  However, ring fenced banks are prohibited from entering into certain types of transactions with financial institutions. Broadly speaking, the term “financial institution” includes investment firms, alternative investment fund managers, structured finance vehicles, credit institutions, certain types of insurance companies, UCITS funds and financial holding companies. 

Ring fenced banks include Barclays Bank (UK) PLC, Clydesdale Bank PLC, Virgin Money PLC, HSBC Bank (UK) Limited, Lloyds Bank Plc, Bank of Scotland Plc, National Westminster Bank Plc, Royal Bank of Scotland plc, Coutts & Company, Ulster Bank Ltd, Santander UK Plc and TSB Bank plc.

In line with the requirements of the Bounce Back Loan Scheme, we set out below information in respect of our relationship with you and matters we have agreed to address during the life of your Bounce Back Loan:

  • We will monitor your repayment record during the life of your Bounce Back Loan and take action to help you where there are signs of actual or possible repayment difficulties.
  • If we identify that you might be vulnerable, we will make appropriate adjustments to ensure that your circumstances are accommodated throughout the duration of your Bounce Back Loan.
  • If you default under your Bounce Back Loan, we will give you a reasonable period to remedy any breach and we will not treat the default as an event of default if it is remedied within this period.
  • We will not require you to pay any fees of any description (including on default) or any default interest (except if the Bounce Back Loan is not repaid when due we may continue to charge interest at 2.5% per annum until such time as it is repaid).
  • We will give consideration to your information needs once you have a Bounce Back Loan with us and provide information to you in a way which is clear, fair and not misleading.
  • We will provide you with information on your right to repay a Bounce Back Loan before your Bounce Back Loan is binding on you.
  • We will provide you with information on the risks of non-repayment of your Bounce Back Loan, including the impact on your credit file before your Bounce Back Loan is binding on you.

We also agree to provide you with the following information during the life of your Bounce Back Loan:
   
1. timely, clear and adequate information that will help you to understand that, if you fail to make payments under your Bounce Back Loan, the amount missed, what can be done to remedy, in what timescales, and the impact (if any) on your future repayments;

2.  if you default, we will give you information about any proposed action we might take in respect of your Bounce Back Loan, prior to taking such action;

3. regular information about your Bounce Back Loan (on at least an annual basis) in the form of a statement setting out details of the payment transactions on the Bounce Back Loan during the period since such information was provided (or the Initial Drawdown Date, if no such information has been provided previously) and amounts outstanding under the Bounce Back Loan; and

4. information on options available to you for help and assistance, including sources of free independent advice.

Over 18s only.  Subject to status. Business use only.  Eligibility criteria applies.