A second-generation cleaning company is benefiting from a five-figure Coronavirus Business Interruption Loan (CBIL) from Lloyds Bank.
Class Cleaning of Louth, was founded in 2005 and offers a range of domestic and commercial cleaning services. The business has had to temporarily cease trading in the face of COVID-19, with a large proportion of its customers OAPs and those most vulnerable to the virus.
The CBIL scheme provides funding for smaller businesses that are experiencing lost or deferred income as a result of Coronavirus and that would not otherwise secure bank finance. The loan is enabling Class Cleaning to continue to pay its staff.
Owner Amanda Turner, who took over the company from her father and stepmother in 2017, has also taken a pay cut to ensure her five members of staff, four full-time and one part-time, can keep being paid while the business is not able to operate.
She said: “I put in an application last week and received a call from Danial at Lloyds Bank within a couple of hours. He’s since kept me updated constantly on the process and next steps, which has helped make a difficult situation a lot easier. I took the company on from my dad and stepmum, so keeping it going, keeping the lights on, means everything to me.”
Danial Helsby, Branch Business Manager at Lloyds Bank, said: “The value of the CBIL scheme cannot be underestimated. In the case of businesses such as Class Cleaning, and the likes of some high-street restaurants, cafés and hairdressers, it’s providing a lifeline for the future.
“We’re working flat out to be by the side of as many businesses as possible. The response turnaround time from the team has been spot on because we know it needs to be. We’re seeing daily that it’s making a massive difference.”
While the CBILS is live Lloyds Bank has said it will not seek personal guarantees for any new financing that it approves. This applies to both normal banking lending and customers who are eligible for the CBILS.
In addition Lloyds has said it will help customers through any interruptions they face and as part of its commitment to lend up to £18bn to support businesses this year, the bank has set aside £2bn of arrangement fee free finance to help small firms affected by COVID-19.
The support is available now and has been designed to help businesses manage their cashflow, which might have been affected by supply chain interruptions or employee absences. It includes arrangement fee free overdrafts as well as capital repayment holidays on loans for businesses that have been severely affected.