Before the coronavirus outbreak, this property developer had agreements with lenders for funding to invest in some new planned developments. But once COVID-19 took hold, the investment was withdrawn, and the company had to secure funding elsewhere. Fortunately, the Coronavirus Business Interruption Loan Scheme (CBILS) was on hand to help.
Success Story
| Region/Nation | East of England |
|---|---|
| Programme | Coronavirus Business Interruption Loan Scheme (CBILS) |
Read what the business had to say in this CBILS case study.
British Business Bank: Can you tell us what your company does?
Michael Eyres, managing director of Artisan (Contracting) Limited: Artisan (UK) Developments Ltd is a commercial property developer, specialising in the development of commercial buildings. Artisan (Contracting) Limited was established specifically to deliver new residential developments.
How did COVID-19 affect your business, and why did this mean you needed a loan from the Coronavirus Business Interruption Loan Scheme (CBILS)?
Prior to the outbreak, we’d secured agreement with lenders to provide development funding for our planned residential developments. However, the lenders withdrew this funding as a direct result of the impact of COVID 19.
The availability of development funding on commercially acceptable terms was essential for the planned residential developments to go ahead. Without CBILS, we would have had to put those developments on hold indefinitely, until development funding became available on our required terms.
How did you find the application process?
The process took approximately three months, and we were supported by our lender, BLG Development Finance.
If CBILS hadn’t been available, it would have had a negative impact on the business overall, reducing turnover and potential profits and harming our future growth. - Michael Eyres managing director of Artisan (Contracting) Limited
What do you think would have happened to your business if your application hadn’t been approved?
If CBILS hadn’t been available to us, it would have had a negative impact on the business overall, reducing turnover and potential profits and harming our future growth. Also, we would’ve been forced to consider laying off some of our existing staff.
Can you provide a specific example of how you used the funding to bring about a positive change (or changes) to your business?
The scheme enabled us to continue with our planned residential developments – a new venture for the business – and help ensure a potentially very difficult situation couldn’t arise.
What advice would you give to other businesses applying for a CBILS loan?
Provided they can meet the qualifying criteria, a CBILS loan is a excellent method of securing funding on commercially acceptable terms.
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