Coronavirus Business Interruption Loan Scheme (CBILS) - OPEN FOR APPLICATIONS

You will have seen that the Chancellor has announced that the British Business Bank will manage the Coronavirus Business Interruption Loan Scheme (CBILS) which will become available in the week commencing 23 March 2020. It will be delivered through a range of over 40 accredited lenders and offer attractive terms for both businesses applying for new facilities and lenders, with the aim of supporting the continued provision of finance to UK businesses experiencing increased costs or disruptions to cashflow during the Covid-19 outbreak.

The scheme provides the lender with a government-backed guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’. The Government will cover the first six months of interest payments and any facility arrangement fees charged by lenders, so businesses will benefit from no upfront costs and lower initial repayments. The maximum value of a facility provided under the scheme will be £5m. Note that the borrower always remains 100% liable for the debt. To find out more about the CBILS and to share information with the various SMEs you work with, please go to: www.british-business-bank.co.uk/CBILS.
 
Any business interested in applying to CBILS should talk to their bank or finance provider (not the British Business Bank) as soon as possible and discuss their business plan with them. This will help the finance provider to act quickly once the Scheme has launched. Note: please do not contact BBB directly, you must only apply through your finance provider.

Below we have listed some resources that we recommend you read before applying:

Coronavirus Business Interruption Loan Scheme (CBILS) FAQs for SMEs

QUICK ELIGIBILITY CHECKLIST FOR SMES

HOW DOES A SMALL BUSINESS APPLY FOR A CBILS-SUPPORTED FACILITY? (Infographic)