Coronavirus Business Interruption Loan Scheme (CBILS)

What is it?

The Coronavirus Business Interruption Scheme (CBILS) supports small and medium-sized businesses that are losing revenue, and seeing their cash flow disrupted as a result of the Covid-19 outbreak. The CBIL Scheme offers access to asset finance of up to £5m and for up to six years.

CBILS provides the lender with a government-backed guarantee for the loan repayments to encourage more lending. The borrower remains fully liable for the debt.

The government will also make a Business Interruption Payment (BIP) to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments

The scheme is delivered through a commercial lender and is backed by the government-owned British Business Bank.

Please note the CBIL Scheme has been extended until 31st January 2021 so please get in touch with your Broker before this deadline.

Am I eligible ?

You must be a UK based business with turnover of no more than £45m per annum. In addition, your business must meet the other British Business Bank eligibility criteria, which include, amongst others:

  • Applications must be for business purposes
  • Business must generate more than 50% of its turnover from trading activity
  • Your CBILS-backed facility will be used to support trading primarily in the UK
  • You wish to borrow up to a maximum of £5m
  • CBILS gives the lender a government-backed guarantee of 80% for the loan

Exceptions

The following businesses aren’t eligible to apply for CBILS:

  • Banks, insurers and reinsurers (excluding insurance brokers)
  • Further-education establishments if they are grant-funded
  • State-funded primary and secondary schools
  • Public sector bodies

Additional notes:

  • Personal Guarantees cannot be taken for any facilities below £250,000
  • The Borrower doesn’t pay any fees to the British Business Bank for providing this scheme
  • Interest and fees are paid by the government for the first 12 months on the guaranteed portion of the facility (Business Interruption Payment – BIP)
  • For facilities over £250,000 personal guarantees may still be required at the Lender’s discretion
  • Update for small and micro-businesses – those businesses that have fewer than 50 employees and turnover less than £9m per annum (“small and micro businesses”) may now be eligible for loans under the Scheme (subject to specific criteria).

The Coronavirus Business Interruption Loan Scheme (CBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy (BEIS). Full details on CBILS and the list of participating CBILS Lenders can be found on the British Business Bank website at: british-business-bank.co.uk/CBILS