Emergency Funding through the Coronavirus Business Interruption Loan Scheme (CBILS)

Updated: 4th February 2021

Companies across the UK are dealing with unparalleled challenges as the enforced closure of premises and strict social distancing measures slam the brakes on business as we know it in the wake of the escalating coronavirus crisis.

In the face of this challenging environment, the UK government has introduced an unprecedented combination of measures to support businesses.

One of these is the Coronavirus Business Interruption Loan Scheme (CBILS), a temporary replacement of the existing Enterprise Finance Guarantee Scheme, which will give companies easier access to both mainstream funding as well as smaller specialist lenders.

Lenders will not be able to request personal guarantees for loans under £250,000; instead security for the banks will be provided by the government who will guarantee 80% of any losses suffered by the lender through non-payment

Key Points

  • Borrow up to £5m
  • Government pays all interest and fees for the first 12 months
  • No repayments necessary for the first 12 months
  • Government will provide 80% security
  • Responsibility for repaying the loan or finance facility remains with the borrower
  • Range of funding options including loans as well as asset-based and invoice finance
  • Funding from high street banks as well as specialist lenders
  • Borrowing through CBILS was made available as of 23rd March 2020 and is set to close 31st March 2021

What type of borrowing is available?

Access to a range of revolving and term finance options including:

  • Business loans and asset finance (terms of up to ten years)
  • Overdrafts
  • Invoice finance and revolving facilities (terms of up to three years)

Is CBILS right for my business, and do I qualify?

  • Eligibility is limited to companies with an annual turnover not exceeding £45 million
  • Must have a ‘sound borrowing proposal’, which would be considered viable by the lender outside of current conditions
  • Lender must be convinced the borrowing will help the company trade out of the current situation and remain in business in the long term
  • Funding will not be granted to prop up an already failing business
  • Only available to companies with turnover under £45 million, however, those with an annual turnover over £45 million can obtain loans worth up to 25% of their turnover (up to a maximum of £200 million) through the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

If you would like further information on CBILS, please visit our Contact Us page and choose Confidential Advice Line where you can opt to speak with an adviser or schedule a meeting at place convenient to you.

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