The Coronavirus Business Interruption Loan Scheme (CBILS) has been set up and delivered by the British Business Bank (via accredited providers) with the aims of supporting primarily small and medium-sized businesses (SMEs) to access bank lending and overdrafts. This scheme will be operational with lenders from Monday 6 April 2020 and will close on Monday 30th November 2020.
Access to the scheme has been opened up to those smaller businesses that would have previously met the requirements for a commercial facility but would not have been eligible for CBILS. Insufficient security is also no longer a condition to access the scheme.
Please note, you can not access the Coronavirus Business Interruption Loan Scheme as well as the Bounce Back Loan Scheme, which is also delivered by the British Business Bank. For more information on the Bounce Back Loan Scheme, Please Click Here
You are Eligible if:
- Your business is UK based, with a turnover of no more than £45 million per year.
- You have a borrowing proposal which the lender would consider viable, were it not for the current pandemic.
- You self-certify that it has been adversely impacted by the coronavirus (COVID-19).
- Not have been classed as a “business in difficulty” on 31 December 2019, if applying to borrow £30,000 or more
You can check your full eligibility using the following – British Business Bank Eligibility Checklist for SME’s
Key Details of the Scheme:
- A lender can provide up to £5 million in the form of:
- term loans
- invoice finance
- asset finance
- CBILS gives the lender a government-backed guarantee for the loan repayments to encourage more lending.
- The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied charges.
- The borrower remains fully liable for the debt.
- Under the scheme, personal guarantees of any form will not be taken for facilities below £250,000.
- For facilities above £250,000, personal guarantees may still be required, at a lender’s discretion, but:
- recoveries under these are capped at a maximum of 20% of the outstanding balance of the CBILS facility after the proceeds of business assets have been applied;
- a Principal Private Residence (PPR) cannot be taken as security to support a personal guarantee or as security for a CBILS-backed facility
- Finance Options:
- For term loans and asset finance facilities: up to six years.
- For overdrafts and invoice finance facilities: up to three years
How to Apply
To apply, visit the British Business Banks website to see their full list of accredited Coronavirus Business Interruption Loan Scheme lenders. Click on a lender that applies to you and from here you will be directed to their website for further details on how you can apply for this scheme through them.
There are 40 accredited providers in all and 22 participating lenders in Northern Ireland
You should talk to your bank or finance provider (this is not the British Business Bank) as soon as possible and discuss your business plan with them as new applications will not be accepted after Wednesday 30th September 2020.