CBILS is a government-backed scheme that provides financial support to viable SMEs that are losing revenue and experiencing cashflow pressures because of the coronavirus. The loans are available for terms of up to six years and include a standard 12-month capital repayment holiday. The first 12 months are interest free as the government pays the interest for you during that time.
The scheme is designed to support businesses that were trading successfully before coronavirus but now face difficulty as a result of the current disruption.
The UK government provides banks with a guarantee for 80% of the loan, but the borrower remains liable for 100% of the outstanding debt.
WHEN CAN I GET A LOAN THROUGH CBILS?
We are now accredited with the British Business Bank and are taking applications, please see the HOW TO APPLY tab for details.
All clients who apply will need to pass eligibility checks and provide us with some information about their business.
WHICH BUSINESSES CAN APPLY?
UK-based businesses with total turnover of up to £45 million a year are eligible for the scheme. CBILS has been designed to ensure that appropriate government support can be provided within a short time-frame to help businesses manage the impact of the coronavirus outbreak.
It is available for new lending requests only, made directly as a result of the coronavirus impact, and will not cover existing facilities we may have agreed with you under normal banking terms and conditions before the Covid-19 outbreak.
DOES IT APPLY TO ALL SECTORS?
Almost all business sectors can access CBILS. Some different terms will apply for a small number of areas, including for some agriculture and aquaculture businesses.
The following are excluded:
- 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
HOW MUCH CAN I BORROW?
We can provide CBILS-supported loans for amounts ranging from £50,001 to £5m. Any lender levied fees that may apply in the first year will be paid by the UK Government.
HOW LONG DO I HAVE TO PAY THE LOAN BACK?
CBILS loans are available for terms of up to six years and include a standard 12-month capital repayment holiday. The interest over the first 12 months is paid by the government, and there is no penalty for early repayment.
CAPITAL REPAYMENT HOLIDAY AND INTEREST-FREE PERIOD
The UK government will pay interest for the first 12 months of the agreement. You will not have to make any capital repayments during the 12-month capital repayment holiday. This means more capital will be outstanding for longer, so you will pay more interest over the full term than if you do not take the capital repayment holiday. You may make extra capital repayments, which would reduce the overall interest costs over the full term.
Lenders are expected to follow their normal security requirements.
We have decided that we will not seek new, or increased, personal guarantees for any debt requested under the scheme. This goes above and beyond the UK government’s requirement that guarantees are not sought for debt requests of up to £250,000.
Any security required will be restricted to business assets only.
These arrangements will have no impact on any existing debt facilities we may have agreed with you, which will continue on the same terms.
HOW LONG WILL CBILS BE AVAILABLE?
CBILS will remain in place until the end of September 2020, but this may be extended by the government which has said there is no maximum limit set for the amount of total lending supported through the scheme.
There is therefore no immediate need to approach lenders if you do not need finance in the short term.
WHAT OTHER FORMS OF GOVERNMENT SUPPORT ARE AVAILABLE?
Please see the government support website for details