CBILS

The Coronavirus Business Interruption Loan Scheme is now closed to new applications.

Please note, applications received by 23.59 on 31 March 2021 can still be processed through to 31 May 2021.

If you have a query about CBILS, or wish to discuss an outstanding application, please contact us on 020 8909 0736 in the usual way.

CBILS was introduced to provide support for SMEs that have been impacted by Covid-19.

For eligible loans, the Government will make a Business Interruption Payment to cover the first 12 months’ interest payments and any upfront fees. The borrower remains 100% liable for the debt.

Applications from both new and existing customers will be considered.

Our CBILS Lending Criteria

Set out below are the key features of our CBILS Lending Criteria:

  • Borrower Type: SMEs, including companies, sole traders and partnerships.
  • Property Type: Residential and non-residential properties.
  • Location: England and Wales.
  • Security: First charge (unregulated).
  • Loan Amount: £250k – £5m.
  • LTV: Up to 75% for residential properties and 65% for non-residential properties.
  • Term: 3 – 24 months.
  • Interest Rates:  0.8% – 0.95% per month for residential loans and 0.9% – 0.96% for non-residential loans.
  • Upfront Fees: 2% – 3.5%.
  • Loan Purpose: Working capital, investment and refinancing debt.

CBILS Eligibility Criteria

In order to be eligible for a Term Loan facility under CBILS, an SME must:

  • Self- certify that it has been impacted by Covid-19.
  • Not be considered a ‘business in difficulty’ (self-certification may be acceptable for micro or small SMEs).
  • Have a turnover of less than £45m per annum (including group turnover) with at least 50% of this being generated from trading activity.
  • Be UK based in terms of its business activity.
  • Have a borrowing proposal which would, were it not for the Covid-19 pandemic, be considered viable by us.
  • Not have received other CBILS loans that would, if they were granted further CBILS finance, result in the CBILS limit of £5m being exceeded.
  • Not be a bank, an insurer or reinsurer, a public sector organisation, or a state funded primary or secondary school.

 

Please find below some additional information from the British Business Bank about CBILS.

 

About CBILS

The Coronavirus Business Interruption Loan Scheme (CBILS), delivered through British Business Bank accredited lenders and partners, is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak. The scheme enables lenders to provide facilities of up to £5m to smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow. It supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities. Please note that for term loans and overdrafts, the minimum amount a lender can offer under CBILS is £50,001.

 

Scheme Features

Key scheme features:

  • Up to £5m facility: The maximum value of a facility provided under the scheme is £5m, available on repayment terms of up to six years.
  • No guarantee fee for SMEs to access the scheme: No fee for smaller businesses.
  • Interest and fees paid by Government for 12 months: The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees[1] , so smaller businesses will benefit from no upfront costs and lower initial repayments[2].
  • Finance terms: Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
  • Guarantee to the lender: The scheme provides the lender with a government-backed, guarantee against the outstanding facility balance. The borrower always remains 100% liable for the debt.
  • Principal Private Residence (PPR) – A borrowers/guarantors PPR cannot be taken as security to support a Personal Guarantee or as security for a CBILS- backed facility.
  • The borrower always remains 100% liable for the debt. Additional notes on security:
  • No personal guarantees for facilities under £250k: Personal guarantees of any form cannot be taken under the scheme for any facilities below £250k.
  • Personal guarantees for facilities above £250k: Personal guarantees may still be required, at a lender’s discretion, but 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. A Principal Private Residence (PPR) cannot be taken as security to support a personal guarantee or as security for a CBIL backed facility.
  • Security: For all facilities, including those over £250,000, CBILS can now support lending to smaller businesses even where a lender considers there to be sufficient security, making more smaller businesses eligible to receive the business interruption payment[3].

 

Eligibility Criteria

  • Smaller businesses from all sectors can apply for the full amount of the facility. To be eligible for a facility under CBILS, a smaller business must:
  • Be UK based in its business activity, with turnover of no more than £45m per year.
  • Have a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender
  • Self-certify that it has been adversely impacted by the Coronavirus

Please note: The following are not eligible under CBILS:

  • Banks, Insurers and Reinsurers (but not insurance brokers);
  • public sector bodies and;
  • state funded primary and secondary schools.

 

Legal Notice

Managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit www.british-business-bank.co.uk/CBILS

Useful Links

[1] Following earlier discussions with the banking industry, some lenders indicated that they would not charge arrangement fees or early repayment charges to SMEs borrowing under the scheme. HM Government greatly appreciates this approach by lenders.

[2] Fishery, aquaculture and agriculture businesses may not qualify for the full interest and fee payment.

[3] Please note that where there is sufficient security available, it is likely that the lender will take such security in support of a CBILS facility.