£4m CBILS Loan Helps Housing Development Continue
Utilising the CBILS scheme, we secured essential finance for a multi-faceted housing developer in the midst of a nationwide lockdown. Here is how.
Loan Size: £4m
Loan Type: Development finance, plus redeeming intercompany loans
Project: 20 family homes
About the Deal
During the height of lockdown, a client came to us for assistance. At the time they were in the first phase of a three-stage housing development consisting of twenty homes. Through discussions with the client we found out they operated in the pharmaceutical industry and that their business was the initial funding source for the project. As a sizeable project, the development now required an additional £4 million in funding.
The initial funding gained from the pharmaceutical business had carried the client through phase one of their development, but now new funding was needed. While the client had to source funding for the remaining phases of their development, there was also a need to redeem its intercompany loans. This would release cash back into the pharmaceutical side of the business to assist the fight against the COVID-19 pandemic.
With this in mind, our challenge was to produce solutions where funding could be applied to complete all phases of the new development, while also injecting money into the company to balance the books and maintain the pharmaceutical side of operations.
We were able to find a lender who offered the full amount of funding on agreeable terms. The client’s eligibility for CBILS (the Government’s Coronavirus Business Interruption Loan Scheme) also meant that the initial cost of setting up the loan and subsequent interest was covered. This provided significant assistance with the development costs, as well as much-needed support for the pharmaceutical business. With larger developments currently going through planning and firmly in the pipeline, we are excited to continue working with the client as they expand their property development business.