Support for businesses through the Coronavirus Business Interruption Loan Scheme (CBILS)
The new Coronavirus Business Interruption Loan Scheme supports SMEs with access to working capital (including loans, overdrafts, invoice finance and asset finance) of up to £5 million in value and for up to 6 years.
The government will pay to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will not face any upfront costs and will benefit from lower initial repayments.
The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs.
This scheme is being delivered through commercial lenders, backed by the British Business Bank.
You are eligible for the scheme if:
- your business is UK based, with turnover of no more than £45 million per year, and;
- your business meets the other British Business Bank eligibility criteria.
How to access the scheme
The scheme is now open for applications. To apply, you should talk to your bank or one of the 40 accredited finance providers (not the British Business Bank) as soon as possible, to discuss your business plan. You can find out the latest on the best ways to contact them via their websites.
All major banks are offering this scheme. If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cash flow.
The full rules of the scheme and the list of accredited lenders are available on the British Business Bank website.
The loan scheme provides the bank with a Government-backed guarantee which will enable your business manager to approve it, whereas, without that guarantee, your request for a loan may have been declined.
Please note: It’s important that you are aware that you, the borrower, will always remain 100% liable for the debt. The CIBLS guarantee is to the lender, not you, the SME.