The Coronavirus Business Interruption Loan Scheme (CBILS) is now available

HOW CAN I ACCESS THE SCHEME?

CBILS is available through the British Business Bank’s 40+ accredited lenders, which are listed on the British Business Bank website here.

In the first instance, businesses should approach their own provider – ideally via the lender’s website. They may also consider approaching other lenders if they are unable to access the finance they need.

Decision-making on whether you are eligible for CBILS is fully delegated to the 40+ accredited CBILS lenders.

Note: if the accredited lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.

AM I ELIGIBLE FOR FINANCE UNDER CBILS?

The scheme is designed to support smaller businesses (SMEs) who don’t meet a lender’s normal lending requirements for a fully commercial loan or other facility, but who are considered viable in the longer-term.

To be eligible for a facility under CBILS, your business must:

• Be UK based in its business activity with annual turnover or no more than £45m or between £45m and £500m.
• Have a borrowing proposal which, were it not for the COVID-19 pandemic, would be considered viable by the lender, and for which the lender believes the provision of finance will enable your business to trade out of any short-to-medium term difficulty
• Smaller businesses from the fashion and textile sector can apply for the full amount of the facility.

IMPORTANT INFORMATION FOR SMEs

Please note: The CBILS guarantee is to the lender and not the business. As with any other commercial transaction, the borrower is always 100% liable for repayment of the facility supported by CBILS.

For further information, please read the British Business Bank CBILS FAQs for SMEs document available here.

UPDATE

The government has announced that it is extending CBILS so that all viable small businesses affected by COVID-19 will be eligible, not just those unable to secure regular commercial financing.

The government has also made the following changes to CBILS;

• Lenders cannot request personal guarantees for loans under £250,000
• For loans over £250,000, personal guarantees will be limited to 20% of any amount outstanding after any other recoveries from business assets
• Banks cannot ask business owners to use their house as collateral.
• Banks are to make operational changes to the scheme to speed up lending

These changes will also apply to finance already offered under the scheme.

In addition, companies with a turnover of between £45 million and £500 million will now be able to access loans of up to £25 million.

CBILS will be offered at commercial interest rates but the government will continue to cover the first twelve months of interest and fees.

Full details of the extended scheme will be announced soon.

UKFT is in constant dialogue with the government and is outlining the latest support available for businesses on our website. We will update the details as and when the situation changes. 

UKFT Coronavirus Guidance