CBILS also nown as Coronavirus Business Interruption Loan Scheme is a UK government scheme aiming to sustain the supply of finance to small and medium-sized UK businesses to support them during the Covid-19 outbreak. It is intended that these finance facilities will help SMES who are experiencing lost or deferred revenues, leading to disruptions to their cash flow.
– Loans made under CBILS benefit from an 80% guarantee from the UK government, meaning that a Lender’s maximum loss is reduced to 20%, and are for sums of up to £5m
– The interest on the first year of the loan is paid for by theUK government, enabling the borrower to have use of the funds without the cost of the interest during that period.
Smaller businesses will benefit from no upfront costs and lower initial repayments. No personal guarantees will be required, so borrowers and guarantors will not have to put up their principal private residence as security.
If you are a business, there are over 50 lenders participating in the scheme including all the main retail banks. You should approach a suitable lender yourself via the lender’s website where to tell the lender:
-the amount you’d like to borrow
-what the money is for
-how long you’d like to pay it back
- If your business fits the following criteria:
-Be UK-based in its business activity
-Be a SME with an annual turnover of no more than £45 million
-Have a borrowing proposal which the lender would consider viable subject to the facility helping with short and medium term cash flow difficulties
-Self-certify that it has been adversely impacted by COVID-19
-Provide suitable security for a secured loan
-Generate more than 50% of its turnover from trading activity
-Not have been classed as a “business in difficulty” on 31 December 2019 and must not be subject to any current collections or insolvency proceedings.
You should be able to start an application
Is your business facing financial and operational challenges as a result of the coronavirus outbreak ?
We can help and guide you to access to scheme with the right documentation, find a lender and apply.