The bank’s CBILS offering is specifically designed for SME housebuilders, developers and investors whose business have been affected by the pandemic.

It will begin offering CBILS asset finance facilities later this month.

The scheme enables lenders to provide facilities of up to £5m to eligible smaller business across the UK who are experiencing lost or deferred revenues that are disrupting their cashflow.

The facilities UTB will be offering are:

• UTB CBILS junior debt term loans
• UTB CBILS sales period finance term loans
• UTB CBILS investment finance term loans

These facilities can share security with the existing UTB product suite, increasing them up to £25m.

They can be used for property development, investment, or bridging facilities across residential, commercial, and mixed-use schemes.

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In the absence of the government-backed loan, the SMEs the facilities are designed for would ordinarily have difficulty raising such finance as they may have fallen outside of UTB’s normal credit risk lending appetite.

Noel Meredith, executive director at United Trust Bank (pictured above), commented: “The Covid-19 pandemic has had a profound effect on the UK economy and its businesses.  

“Many SME housebuilders and developers are suffering from the consequences, though these may take time to become fully apparent.  

“Construction programmes have extended, supply chains are disrupted, [and] sales markets are uncertain, both in terms of transaction volumes and value. 

“All of these create additional costs and funding needs at a time when funding markets are disrupted and lenders are being cautious due to overwhelming uncertainty.  

“The UK is facing deep economic uncertainty, but we must continue to tackle the nation’s growing housing shortage. 

“SME housebuilders, developers and investors have a significant and important role to play in that endeavour, and UTB will continue to support them with innovative funding solutions.”