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The Coronavirus Business Interruption Loan Scheme (CBILS) is a new government scheme that has been established in response to the COVID-19 pandemic. The scheme provides finance for smaller businesses (SMEs) across the UK that are experiencing disruption to cashflow due to late or lost income as a result of the Coronavirus outbreak.
What are the key features of the Coronavirus Business Interruption Loan Scheme (CBILS)?
Finance of up to £5million - The maximum value of facility provided under the scheme is £5million on repayment terms of six years for term loans and asset finance. For overdrafts and invoice facilities, terms will be up to three years.
Government-backed guarantee - The scheme provides the lender with a government-backed partial guarantee (80%) against the outstanding facility balance. The borrower remains 100% liable for the debt.
Interest and fees paid for by the government - The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied charges. This means businesses will benefit from no upfront costs and lower initial repayments.
Security - At the discretion of the lender, the scheme may be used for unsecured lending for facilities of £250,000 and under. For facilities above £250,000, the lender must establish a lack or absence of security prior to businesses using CBILS. If the lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.The borrower always remains 100% liable for the debt.
No guarantee fees - There are no guarantee fees for SMEs. Lenders pay a fee to access the scheme.
What type of financing can I get through the Coronavirus Business Interruption Loan Scheme (CBILS)?
Fixed-term loans with terms of up to 6 years
Asset finance with terms of up to 6 years
Overdrafts with terms of up to 3 years
Invoice finance with terms of up to 3 years
How do I apply for the Coronavirus Business Interruption Loan Scheme (CBILS)?
We currently work with a number of high-street banks, challenger banks and asset-based lenders that are accredited partners of the British Business Bank that are able to offer facilities through CBILS.
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