The Coronavirus Business Interruption Loan Scheme (CBILS) is now available through participating lenders
The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses (SMEs) across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.
HOW CBILS WORKS
British Business Bank operates CBILS via its accredited lenders. There are over 40 of these lenders currently working to provide finance.
At the Practice Loan Company PLC we have direct access to funders accredited by the British Business Bank for the CBILS, as well as are working alongside a specialist advisory company who are experts in this field. They are working with all the funders on the panel and have weekly updates from The Bank of England. As an FCA approved finance broker, they have direct access to the majority of the lenders on the British Business Bank panel for CBILS, and those that they haven’t, they are discussing the best way to move forward with them. However, these lenders have only recently received the information on the CBILS (from the British Business Bank), therefore please bear with them as the funders filter through the information over the next few days.
At The Practice Loan Company we can help build a fully viable proposal for the Lenders and make sure the proposal is placed with the accredited lender most likely to provide the funding based on your unique business circumstances. Should one lender turn you down we can approach another lender in the scheme.
Your business must:
- Be UK-based in its business activity
- The application must be for business purposes
- The revamped scheme will offer government-backed loans of up to £25m to firms with revenues of between £45m and £500m and up to £5m for turnover below £45m
- Have a borrowing proposal which the lender:
- would consider viable, were it not for the COVID-19 pandemic
- believes will enable you to trade out of any short-term to medium-term difficulty
- Your business must generate more than 50% of its turnover from trading activity
What can our Lenders provide under the CBILS
- Term loans – 1 to 6 years
- Asset finance – For the purchase of new and used equipment. Hopefully Refinance of Equipment for cash release will become available under the scheme over the coming days.
KEY FEATURES OF THE SCHEME
CBILS gives the lender a government-backed guarantee for the loan repayments to encourage more lending.
Lenders will not take personal guarantees as security for lending below £250,000 under CBILS.
The scheme provides the lender with a government-backed, partial guarantee against the outstanding balance of the finance.
The borrower remains 100% liable for the debt.
The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied charges.
Payment holiday in the first 12 months (in most cases).
There are no guarantee fees for SMEs. Lenders pay a fee to access the scheme.
For the full information on the scheme please visit https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/