A Cornish holiday resort has been saved by a 拢1million bail out after being forced to shut due to the coronavirus lockdown.
Tregenna Castle Resort, in St Ives, secured the finance from Lloyds Bank under the Government鈥檚 Coronavirus Business Interruption Loan Scheme (CBILS).
The business鈥 hotel, self-catering, leisure and events venue were all forced to shut and bosses have been preparing for a "significant" drop in revenue, with quarantine restrictions falling ahead of its busy season for holidays, events and weddings.
The resort typically hosts 100,000 holidaymakers and 120 weddings a year. It usually employs 120 staff, which rises to 150 between April and October to cater for increased demand. The majority of its staff are now on furlough.
The new CBILS financing, gives the resort the flexibility to keep a skeleton staff of 15 on site, including security and maintenance contractors to help maintain the grounds.
The finance will also enable Tregenna to invest in its marketing activities to help attract bookings in preparation for reopening, with the support of Cheltenham-based hospitality marketing agency Journey.
To help sustain income through the coming weeks, the resort is also launching a new takeaway delivery service from its brasserie, with drinks and Cornish dishes on the menu for residents living nearby.
The resort expects its self-catering accommodation, set in 72 acres of open grounds, to be the first to resume trading if quarantine restrictions are lifted on a phased basis.
It plans to make contactless check in available, with picnics and cream tea on offer to guests for delivery, keeping residents safe in compliance with social distancing measures, if still required.
John Mason, principle shareholder at Tregenna Castle Resort. Said: 鈥淭he current situation is one that no business can effectively prepare for, but our senior team was braced for a major hit ahead of lockdown being implemented - giving them a head start for contingency planning.
鈥淭he support we鈥檝e had has been beyond expectation. The team at Lloyds Bank responded to our situation with haste and the finance was quickly put in place. This allows us to plan with real confidence towards opening our doors again very soon.鈥
Phil Davies, relationship director at Lloyds Bank, said: 鈥淲hile completely necessary, lockdown measures have served a great blow to Tregenna鈥檚 balance sheet, with holidays, weddings and conferences forced to cancel.
鈥淎s a significant local employer, the finance secured by the resort ultimately helps to ensure that a job will be there at the end of this term for its many hardworking staff. Meanwhile, Tregenna will be polished and ready to welcome back guests hungry for a getaway as soon as the time is right.鈥
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Businesses with a turnover up to 拢45million are able to access loans of up to 拢5million under CBILS, with the first 12 months interest-free and the first six months capital repayment free, if borrowing from Lloyds.
But the entire loan does have to be paid eventually.
Lloyds Bank Commercial Banking said it has committed a 拢2billion fund to support businesses impacted by Covid-19. This provides for additional fee-free lending to SMEs with up to 拢25million in turnover, and capital repayment holidays.
Smaller businesses experiencing lost or deferred income as a result of coronavirus may also be eligible for CBILS and receive low-interest financing, while SMEs with a turnover above 拢3million can access Lloyds鈥 fast track process for credit approval.
