Building on a partnership

United Trust Bank, the British Business Bank and British Property Investors, Developers and Business Owners working in partnership.

Offered to existing and new United Trust Bank Property Investor, Developer & Business Owner customers adversely impacted by COVID-19

Loan terms up to 36 months (or 6 years for investment finance) | Loan amounts between £500,001 to £5,000,000 | The interest charge for the first 12 months, the arrangement fees may be the professional fees are paid by the Government


Investment Finance Term Loan
See below for full product details and information about eligibility or download our product guide here.


 

Sales Period Finance Term Loan
See below for full product details and information about eligibility or download our product guide here.



Guide to the UTB | CBILS Investment Finance Term Loan

Our Investment Finance Term Loan comes with a government-backed guarantee via the BBB potentially enabling us to provide facilities to support operating and investment activities where investors and business owners would ordinarily have difficulty raising finance due to the impacts of COVID-19.

Purpose

For Property Investors and Business Owners who require additional funding for operating & investment activities because they have been adversely impacted by COVID-19.

Key features

  • Existing & New customers (‘the Borrower’).
  • Loans available up to 70% of Market Value.
  • Loan terms available up to 36 months*.
  • Loans amounts between £500,001 and £5,000,000**.
  • Most property types considered.
  • The Government will make a Business Interruption Payment (“BIP”) to cover the arrangement fee, bank appointed professional fees such as valuation & legals and the first 12 months of interest payments, so smaller businesses will benefit from lower finance costs.

* Longer terms up to a maximum period of 60 months are available. These will attract a premium to the variable interest rate quoted.

** For loan amounts in excess of this sum, we can provide funding on the additional account on commercial terms.

Interest costs and fees

  • A Commitment fee of £2,500 is payable upon acceptance of the loan facility together with the fee for valuation and solicitors undertaking for legal costs. The commitment fee will be netted off the arrangement fee at drawdown.
  • An arrangement fee of 1% is debited to the loan facility at drawdown and reclaimed on behalf of the Borrower via the BIP. This fee is calculated on the facility amount.
  • Professional fees incurred by the bank relating to the valuation and legal requirements can be reclaimed on behalf of the Borrower via the BIP.
  • A variable interest rate is payable of 6.65% inclusive of UTB base rate. Interest is accrued daily on the outstanding loan amount and charged monthly for terms up to 36 months. Interest for the first 12 months is periodically reclaimed on behalf of the Borrower via the BIP.
  • If finance is sought by the borrower through an appointed credit broker then we can include the broker fee within the loan facility up to a maximum of 1% of the facility amount. This is not covered by the BIP.

Conditions

  • Rental income may be required to be mandated to the bank.
  • Security to include a first legal mortgage over the property(s), debenture(s) and limited personal or corporate guarantees.
  • The Borrower will be required to provide the bank with funds to cover valuation costs as well as a solicitors undertaking for legal costs upon acceptance of the facility letter documentation. These costs may be recovered via the BIP.
  • First draw down under the loan must be within 3 months of the date of the offer letter.
  • Interest is to be paid as it falls due ahead of any reimbursement under the BIP.
  • To be eligible, the borrower must

(i) be UK based in its business activity, with turnover of no more than £45m pa

(ii) have a borrowing proposal which UTB would consider viable, were it not for the current pandemic

(iii) self-certify that it has been adversely impacted by COVID-19 and

(iv) not classed as a business in difficulty on 31-12-2019.

CBILS requirements for Intermediaries

To enable UTB to accept referrals from Intermediaries you must:

  • Complete all materials in the CBILS Intermediaries Training pack
  • Complete the UTB CBILS Intermediaries Training certificate
  • Complete the UTB Intermediaries Terms of Business

All materials are available upon request


Guide to the UTB | CBILS Sales period Finance Term Loan

Our Sales Period Finance Term Loan comes with a government-backed guarantee via the BBB potentially enabling us to provide facilities to support newly completed development schemes where SMEs would ordinarily have difficulty raising finance due to the impacts of COVID-19.

Purpose

For Developers & House builders who:

i) are approaching or have achieved PC but require an extended period of time & additional funding to complete sales or have embarked on a rental strategy until the sales market normalises or,

ii) require assistance in the expansion of their business through the acquisition of new projects, as a result of COVID-19.

Key features

  • Existing customers with new transactions that are not already being funded by UTB & New customers.
  • Loans available up to 70% of Market Value.
  • Loan terms available up to 36 months.
  • Loans amounts between £500,001 and £1,000,000*.
  • The Government will make a Business Interruption Payment (“BIP”) to cover the arrangement fee, bank appointed professional fees such as valuation and legal’s and the first 12 months of interest payments, so smaller businesses will benefit from lower finance costs across the project.

* For loan amounts in excess of this sum, we may provide funding on the additional amount on normal commercial terms.

Interest costs and fees

  • A Commitment fee of £2,500 is payable upon acceptance of the loan facility together with the fee for valuation and solicitors undertaking for legal costs. The commitment fee will be netted off the arrangement fee at drawdown.
  • An arrangement fee of 1% is debited to the loan facility at drawdown and reclaimed on behalf of the Borrower via the BIP. This fee is calculated on the facility amount.
  • Professional fees incurred by the bank relating to the valuation and legal requirements can be reclaimed on behalf of the Borrower via the BIP.
  • A variable interest rate is payable of 6.65% inclusive of UTB base rate. Interest is accrued daily on the outstanding loan amount and charged to the loan facility monthly. Interest for the first 12 months is periodically reclaimed on behalf of the Borrower via the BIP.
  • If finance is sought by the borrower through an appointed credit broker then we can include the broker fee within the loan facility up to a maximum of 1% of the facility amount. This is not covered by the BIP.

Conditions

  • The majority of the scheme units completed and signed off.
  • Completed units can be rented or a combination of rented units and units for sale.
  • Rental income may be required to be mandated to the Bank.
  • Security to include a first legal mortgage over the property or site, other assets of the borrower, debentures and limited personal or corporate guarantees if appropriate.
  • The Borrower will be required to provide the bank with funds which may be reimbursed to cover to cover valuation costs as well as a solicitors undertaking for legal costs upon acceptance of the facility letter documentation.
  • First draw down under the loan must be within 3 months of the date of the offer letter.
  • To be eligible, the borrower must

(i) Be UK based in it’s business activity, with turnover of no more than £45m pa

(ii) Have a borrowing proposal which UTB would consider viable, were it not for the current pandemic

(iii) Self-certify that it has been adversely impacted by COVID19 and

(iv) Not classed as a business in difficulty on 31-12-2019.

CBILS requirements for Intermediaries

To enable UTB to accept referrals from Intermediaries you must:

  • Complete all materials in the CBILS Intermediaries Training pack
  • Complete the UTB CBILS Intermediaries Training certificate
  • Complete the UTB Intermediaries Terms of Business

All materials are available upon request


The Coronavirus Business Interruption Loan Scheme (CBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS).

Full details on CBILS eligibility criteria and the list of participating CBILS lenders can be found on the British Business Bank website at: www.british-business-bank.co.uk/CBILS

Next steps

Contact us


Open your business account here

Open your ISA account here

Online Banking