Coronavirus Business Interruption Loan Scheme
The British Business Bank’s Coronavirus Business Interruption Loan Scheme (CBILS) is a government-backed scheme that aims to support the continued provision of finance to UK SMEs that are experiencing lost or deferred revenues, leading to disruptions in their cashflow as a result of the COVID-19 outbreak.The scheme enables lenders to provide finance facilities of up to £5m over a maximum of six years. The first 12 months’ interest and fees are covered by the government.
What are the timescales for application?
The Chancellor of the Exchequer has announced the Coronavirus Business Interruption Loan Scheme (CBILS) will be extended until 30 November 2020.
Is my business eligible?
To help you understand if you may be eligible to apply to a CBILS-backed facility, please ensure you can answer yes to the following:
• Your application must be for business purposes and the business must have been adversely impacted by the Coronavirus (COVID-19)
• You must be a UK-based SME with annual turnover of up to £45m
• Your business must generate more than 50% of its turnover from trading activity
• Your CBILS-backed facility will be used to support primarily trading in the UK
• You wish to borrow up to a maximum of £5m.
CBILS has been designed to ensure that appropriate government support can be provided within a short timeframe to help businesses manage the impact of the coronavirus outbreak.
Does it apply to all sectors?
Almost all business sectors can access CBILS. Some different terms will apply for a small number of areas, including for some agriculture and aquaculture businesses. How much can I borrow using CBILS? Up to £5m over a maximum term of six years through CBILS.
Who is responsible for the full value of the debt?
As with any other commercial transaction, the borrower is always responsible for the repayment of the full value of any facility supported by CBILS. The government-backed guarantee is to the lender and not the small and medium-sized business.
What involvement does the government have?
The UK government will pay interest and fees for the first 12 months of the agreement.
Do I need a personal guarantee for CBILS?
No personal guarantees are required for facilities under £250k. For facilities over £250k, a personal guarantee may be required but:
• No charge will be taken over a Principal Private Residence (PPR)
• 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
How long will I have to pay back my CBILS loan?
CBILS loans are available for terms of up to six years, with the interest and fees over the first 12 months paid by the government.
How do I apply?
Speak to a member of our team about finance options when discussing your machinery requirements or request further information using the form below:
