Funding 365 has been granted further pandemic emergency funds from the British Business Bank, following demand for these “lifeline” loans from small firms.

The bridging loan specialist says under the scheme it will provide unregulated bridging loans up to 65 per cent loan to value for up to 24 months.

These loans will be secured on a first charge basis against residential properties in England and Wales.

These funds fall under the Coronavirus Business Interruption Loan Scheme (CBILS), provided by the government-owned British Business Bank, set up in 2014 to ease finance for start-ups and small firms.

Funding 365 director Mike Strange says: “The latest lockdown in the UK is undoubtedly deepening the negative impact of Covid-19 on a huge number of SMEs, so the extension of government measures – including CBILS – will be a lifeline for many.”

Strange adds: “Funding 365 is determined to do what it can to continue to support businesses through this pandemic and our increased CBILS allocation from the British Business Bank will enable us to further help those in need.”

Approved loans under CBILS will see the government make a Business Interruption Payment to cover the first 12 months of interest payments as well as any lender-levied charges. However, the borrower remains 100 per cent liable for the debt.

Firms eligible for a CBILS loan must be UK based in its business activity, with turnover of no more than £45m per year.

Under the conditions of the loan, these firms cannot be judged to be 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.

The CBILS programme was introduced last March, and on 17 December the government extended the scheme until 31 March 2021.