Guide for our business clients
Coronavirus Business Interruption Loan Scheme – CBILS
What is it?
CBILS has been set up by the government and is coordinated by the government owned British Business Bank. It is designed to lend to small and medium sized businesses who are experiencing disruption due to the Coronavirus pandemic. Loans from £25,001 to £5million are available for a maximum term of six years to help businesses struggling with cashflow. Shorter term finance (maximum 3 years) such as overdrafts and invoice finance are also available via CBILS.
Who is eligible?
If your business's turnover is below £45million and at least half of this is from trading. Your business needs to be viable, were it not for coronavirus pandemic. Most sectors are eligible to apply. Some lenders will offer loans on normal commercial terms, without resorting to CBILS.
How do I apply?
At present over 40 lenders, from high street banks to challenger banks plus specialist lenders offer this facility and you can apply direct to them. You can find them here.
How much does it cost to borrow via CBILS?
No guarantee fee is payable by your business as it is the lender who will pay this. You will have the advantage of no upfront costs and lower initial repayments. The Government will cover the first 12months of interest and some arrangement fees imposed by lender.
What about protection?
We understand that making the decision to apply to CBILS is daunting and not without its pitfalls. It is imperative that you are aware that you ('the borrower') are always fully liable for any such debt, the CBILS guarantee is to the lender and not, unfortunately, to you and your business. It is therefore extremely important to consider insurance to cover any liabilities should difficulty or unforeseen circumstances arise, to protect yourself, your family and your business.
What if I need help?
Please contact us if you require any assistance, we are always at your service and happy to help - at no cost to you.