Coronavirus Business Interruption Loan Scheme (CBILS)
Key features
On 23rd March, the British Business Bank (BBB) made emergency CBILS loans accessible through accredited lenders up to £5m, 80% guaranteed by the Government. Applications to the scheme have been extended to 30 November 2020.
Key features:
- Available for all UK businesses with annual turnover up to £45m
- Applicant has a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender, and for which the lender believes the provision of finance will enable the business to trade out of any short-to-medium term difficulty
- Interest free for up to 12 months and no upfront charges
- Repayment terms of up to 10 years available
- Term loans, overdrafts, asset finance and invoice finance products all available, subject to availability from particular lenders
- Up to £250,000 may be on an unsecured basis, subject to lender discretion
- Can be accessed alongside other emergency Government support (see below)
Further information can be found here.
CORONAVIRUS LARGE BUSINESS INTERRUPTION LOAN SCHEME (CLBILS)
A similar scheme is available to large businesses with a group turnover of more than £45m and require finance of up to £200m.
The key features are very similar to CBILS however, borrowers would not benefit from the 12 month repayment holiday and maximum repayment term is 3 years.
Further information can be found here.
CBILS applications must be made via specific lenders who will each follow their own credit procedures and apply to the BBB. It is expected that the application process will be similar to the Enterprise Finance Guarantee Scheme, which has been temporarily suspended.
If you or your client requires advice on which lenders or products are the most suitable or any assistance with the application process and compiling a viable business proposal then please contact one of our Debt Advisory team.
