CBILS Development Finance.

Fox Davidson have access to government backed development finance under the Coronavirus Business Interruption Scheme (CBILS).

The funding has been made available through bespoke development finance lenders and offers property developers 12 months interest free money and a refund of various costs such as legals, valuations and set up fees.

CBILS is available to fund the build and also as development exit finance for schemes that have reach practical completion and are in the process of being sold.

Update: CBILS now extended to 30th November for new applications and completions must happen by the end of March 2021.

CBILS Development Finance Terms:

  • Minimum loan amount £1m & Maximum loan amount £5m (larger amounts can be additionally funded outside of CBILS)
  • 65% loan to GDV including interest roll up.
  • 15% developers own cash in
  • Experienced developers only, must have completed developments previously
  • 12 months no interest and month 13 onwards 9% approx. interest charged
  • 1% broker fee
  • Refund of initial valuation, initial QS report, lenders legal costs and lenders arrangement fee

CBILS Development Exit Finance:

  • Minimum loan amount £1m & Maximum loan amount £5m (larger amounts can be additionally funded outside of CBILS)
  • 60% of GDV NET loan amount
  • 0% interest for 12 months
  • No lender fees
  • Refund of valuation fees
  • 1% broker fee

“This is the cheapest funding I have seen in my career and likely will ever see. Any developers looking to get funding on developments in the coming weeks and months should be looking to apply for this funding. We are already working with many of our existing developers to package applications for submission to the lenders’ underwriters for approval.”


Wesley Davidson, Director at Fox Davidson

FAQ’s

What is the minimum loan amount for a CBILS development finance loan?

We are working with developers that need funding from £1m. The maximum loan is £5m.

Who can apply for a CBILS development loan?

UK based companies with max turnover of £45m can apply for a CBILS development finance loan.

Does my business need to have suffered financially because of COVID-19?

Yes. You will need to self-certify that you have been affected by Coronavirus to access the funding.

Your business should not have been classed as ‘in difficulty’ pre-December 2019.

What profit does the development need to make to be eligible?

The development needs to have at least 20% profit pre-finance costs to be eligible

Will you lend on single unit schemes?

Yes, the development funding is available on single and multiple unit schemes including flats and houses.

How long is the scheme available for?

Updated: The scheme now runs until end of November with the last completion in March 2021.

To discuss CBILS development finance call Fox Davidson on 0117 989 7950 or email enquiry@foxdavidson.co.uk