Funding 365 has received a further increase in its Coronavirus Business Interruption Loan Scheme (CBILS) allocation from the British Business Bank to be able to support more SMEs impacted by Covid-19.

The lender is encouraging all remaining CBILS bridging loan applicants to get in touch with them as soon as possible to ensure that eligible loans can be approved by the 31 March deadline.

In last week’s Budget announcement, Rishi Sunak confirmed that the scheme is to be replaced in April by the Recovery Loan Scheme, under which interest and fees must be paid by the borrower from the outset.

Under CBILS, Funding 365 provides unregulated bridging loans up to £3million for a maximum 65% LTV for up to 18 months, secured on a first charge basis against residential properties across England and Wales.

To be eligible for a facility under CBILS an SME must be UK based in its business activity, with turnover of no more than £45m per year. It must not be considered a ‘business in difficulty’ and must have a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender.

For approved loans under CBILS the Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied charges. The borrower remains 100% liable for the debt.

Paul Weitzkorn (pictured), director at Funding 365, said: “It’s become clear that a great many small firms in the property industry have been – and still are being – negatively impacted by the ongoing pandemic. With less than four weeks left until the CBILS deadline, we urge businesses and their brokers to not delay in reaching out to see if we are able to support them through this time.”