The Coronavirus Business Interruption Loan Scheme (CBILS) will temporarily provide financial support to help small and medium sized businesses through this crisis.
CBILS can provide up to £5 million for SMEs across the UK that have seen their cashflow disputed by lost or deferred revenues. The scheme supports term loans, overdrafts, invoice finance and asset finance facilities.
It was updated on 2 April following criticisms about accessibility, banks behaviours and liability.
Am I eligible?
To be eligible to take advantage of CBILS, your SME must be based in the UK and have an annual turnover of no more than £45 million.
You must have a proposal which, were it not for the Coronavirus outbreak, the vender would consider viable. The lender must also believe that the scheme will enable your business to outlast any short-to-medium term difficulty.
I am getting other kinds of aid to help deal with Coronavirus, am I still eligible?
Yes. The eligibility criteria for CBILS does not require Lenders to take into account the other forms of government support that SMEs may be benefiting from.
When can I access the scheme?
The scheme went live on 23 March and will initially run for six months.
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.
In the first instance SMEs should approach their own provider online. If they are unable to get hold of the funds they need they might then approach other lenders.
Are there any fees to borrow under CBILS?
There is no guarantee fee to use the CBILS scheme.
What types of finance are available?
CBILS supports a wide range of business finance facilities, including:
Term loans
Overdrafts
Asset finance
Invoice finance
Is the scheme appropriate for Start-ups?
UK-based start-ups may be eligible, however the British Business Bank’s Start Up Loansprogramme is likely to be more suitable.
Will I need security to get a CBILS-backed loan?
This is at the discretion of the lender, however the Big Four banks have agreed that personal guarantees will not be taken as security for lending below £250,000.
Primary residential properties cannot be taken as security under the scheme.
Will the CBILS funds run out so I can’t access the scheme?
No. The Government has confirmed that the amount of funds available will match the demand. Therefore you do not need to rush if you are not in any immediate need.
Are sole traders / freelancers eligible?
Yes, provided the business activity is operated through a business account.
The scheme is open to sole traders, freelancers, body corporates, limited partnerships, limited liability partnerships and any other legal entities operating in the UK with a turnover under £45m.
