The Coronavirus Business Interruption Loan Scheme (CBILS) is designed to specifically support small to medium-sized businesses, with an annual turnover of up to £45 million by giving them access loans, overdrafts, invoice finance and asset finance of up to £5 million spanning over 6 years.
The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees. This will allow smaller businesses to benefit from no upfront costs and lower initial loan repayments.
The government will provide lenders with a guarantee of 80% on each loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to small and medium-sized businesses. This means that as a small to medium sized business you are more likely to be able to secure the financial package you really need!
The scheme is delivered through commercial lenders and is backed and regulated by the government-owned British Business Bank.
If you want to have a look at all the lenders who are currently offering this scheme, which include all the major banks here is the link
This sounds like it could really help my business. Am I eligible?
You’re eligible if your business:
- is based in the UK
- has an annual turnover of up to £45 million
- has a borrowing proposal which the lender would consider viable, if not for the coronavirus pandemic
However it’s worth noting that the following businesses are not eligible to apply:
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- further-education establishments, if they are grant-funded
- state-funded primary and secondary schools
I believe my business is definitely eligible. How do I apply?
The full rules of the scheme and guidance on how to apply is available on the British Business Bank website.
The link can be found here
Or of course you can call us on 01384 271858 and consider it done.