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Coronavirus Business Interruption Loan Scheme

View profile for Andrew Crabtree
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Following the launch of the Coronavirus Business Interruption Loan Scheme (CBILS), small and medium-sized businesses can now apply for finance to help deal with operating costs and help to maintain cash flow. 

Is my business eligible?

The scheme is available to businesses with with UK-based business activity and a turnover up to £45 million . At least 50% cent of the business’s turnover must be in the form of trading activity.

Whether you can obtain a CBILS is a decision which has been delegated to accredited CBILS lenders. These range from high-street banks to smaller, specialist lenders. Businesses must go through a full credit assessment process for each application made. Lenders will consider each application and are likely to check whether your business would qualify for a loan on normal commercial terms or whether the CBILS is more suitable.

Some sectors are not eligible - click here for more details

What finance can I access?  

Funding can be in the form of loans, overdrafts, invoice financing or asset finance, with each lender choosing which elements of the scheme it supports. Subject to the lender’s criteria, facilities will be made available from £1,000 to £5m. CBILS will be interest-free for the first 12 months. The Government and the British Business Bank, which is helping to administer CBIL, have confirmed that no setup fees will be charged.

Am I liable for all of the debt?

The borrower will be fully liable for the debt. 

How do I apply?

There are currently around 40 accredited lenders offering the scheme, with more coming on board regularly. To apply for the loan:

  1. Decide which form of finance you need and identify which accredited lenders are able to offer it.  use the British Business Bank’s filter tool for this by clicking here.
  2. Research what each lender is offering via their website
  3. Decide how much funding you require
  4. Collate the necessary information for your application, including an up to date business plan, management accounts and cash flow/financial forecasts
  5. Make an application via your chosen lender - this process may differ from lender to lender

The British Business Bank has suggested it may be beneficial to seek finance in the first instance through a lender you have an existing relationship with.

Coronavirus and commercial rent payments

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