"I look forward to helping franchisees work through this current environmental challenge," says Mark Scott, franchise development manager
As the Coronavirus Business Interruption Loan Scheme (CBILS) has been introduced and replaces the current EFG Scheme for the foreseeable future, the NatWest and RBS franchise team has produced a guide for the scheme, which runs through the details, covers how to apply and the information required, including an application form.
Mark Scott ACIB QFP, franchise development manager of NatWest and RBS franchise team, points out a few key aspects of the scheme:
• It is available for its customers only. Businesses should approach their own bank in the first instance – most banks, including the franchise ones, are adopting the scheme
• No repayments or interest collected for 12 months
• No fees
• No premium (EFG had a 2 per cent premium)
• No personal guarantee
• It is lending of last resort so other lending sources will be examined initially, such as increased secured lending if security already held
• Not available to refinance other debt
• The lender will require 2019 trading performance as a minimum – management accounts rather than accounts where appropriate
• An assessment of costs for the period is included in the application document
• The general basis of its assessment is that if the business was successful before the pandemic and could afford the loan it will be afterward
He continues: “Whilst the process of obtaining the funds is expected to be much shorter than other facilities the sheer volume of requests from our customers means there will inevitably be some delays in processing in the short term. This may also be the case with government grants.
“In order to reduce the burden of front line managers if any franchisees are looking to take advantage of the scheme and to enable us to monitor requests, franchisees can apply through me in the first instance or ask me any questions around the scheme. You can also urgently email email@example.com, where the requests will be shared amongst my colleagues in the team.
“The EFG scheme is currently on hold and so any new franchisee that would ordinarily use the scheme will have to wait on their application until the crisis recedes. I am very happy to speak to any potential franchisee about our usual process in the interim and keep them informed of changes in due course, ready for a ‘normal’ application at some stage.”
You can access the guide here: NatWest and RBS franchise team support guide