The Chancellor of the Exchequer announced on Thursday 17th December 2020 that the government’s three Coronavirus business interruption loan schemes, the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) and the Bounce Back Loan Scheme (BBLS) including the Future Fund will be extended to 31 March 2021.

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.

To assist with the growing anxiety experienced by many businesses across the UK, CBILS will provide funding facilities via a wide range of commercial finance products from £50,000 up to £5 million, in the form of:

CBILS has been significantly expanded along with changes to the scheme’s features and eligibility criteria. The changes mean even more smaller businesses across the UK impacted by the coronavirus crisis can access the funding they need.

Importantly, access to the scheme has been opened up to smaller businesses who previously met the requirements for a commercial facility but would not have been eligible for CBILS and this significantly increases the number of businesses eligible for the scheme. Insufficient security is no longer a condition to access the scheme.

How it works

The British Business Bank operates CBILS via its accredited lenders, there are over 40 of these lenders currently working to provide finance for UK SMEs. You can either approach lenders directly or we can on your behalf.

The government will also make a Business Interruption Payment, meaning that for all businesses accessing CBILS, there will be no interest payments and lender fees expected for the first 12 months. This will enable SMEs to focus their time, energy and of course, money, on achieving business continuity. Some lenders are also offering Capital Repayment Holidays for up to 12-months.

Key features of the scheme

  • Finance from £50,000 up to £5 million
  • Lenders will not take personal guarantees of any form for facilities below £250,000
  • For facilities above £250,000 personal guarantees may still be required. It will exclude the Principal Private Residence (PPR) and recoveries under these are capped at a maximum of 20% of the outstanding balance of the CBILS facility after the proceeds of business assets have been applied

Who is eligible

Your business must:

  • Be UK based in it’s business activities
  • Have an annual turnover of no more than £45 million
  • Have a borrowing proposal which the lender would consider viable, were it not for the current pandemic
  • Self-certify that it has been adversely impacted by the coronavirus (COVID-19).

View the British Business Banks eligibility checklist

Businesses from any sector can apply, except the following:

  • 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

If you require finance for less than £50,000 and meet the eligibility criteria, a Bounce Back Loan may be better for your business.

We always take a ‘whole of market’ approach and are bold enough to claim that ” if we can’t secure you finance then it can’t be done”.

If you would like to see whether your business could benefit from the Coronavirus Business Interruption Loan Scheme, please Contact Us.

For information on the extension to 31 January 2021 please see our Post COVID-19 Loan Scheme Extensions.