How to apply for Coronavirus Business Interruption Loan Scheme (CBILS)

Access the government-backed Coronavirus Business Interruption Loan Scheme (CBILS) for loans up to £250,000.

Given the current economic and social situation, the government has introduced CBILS for businesses and SMEs who have been impacted by the current COVID-19 pandemic.

What is CBILS?

The scheme has been introduced to provide financial support to SMEs within the UK to reduce the impact of disrupted sales and cashflow. CBILS can be a vital lifeline for many SMEs enabling them to cope with the direct impact of coronavirus (COVID-19).



The eligibility criteria and features of CBILS have changed since it was first announced.



The main change is insufficient security is no longer a condition to access the scheme, effective 6/4/2020, with the aim to increase acceptances.

What is CBILS Key Features


Loans amounts

Maximum loan values of £5 million

Finance terms

Apply for terms of up to 5 years

Personal Guarantees / Security

As of 6/4/2020 lack of security is no longer a deciding factor of applications

There is no need for personal guarantees (P.G.) for loans amounts under £250,000

For amounts greater than £250,000 a P.G. may be required

Interest

Interest for the first 12 months of your agreement is covered by the government

Fees

There are no guarantee fees for UK SMEs

Exceptions

The following businesses are not eligible to apply:

  • 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


Under the original eligibility criteria, many small business applications were declined due to insufficient security. If you applied prior to 6/4/2020 you may now be able to access funding via the scheme.



CBILS Key Benefits

Key Benefits

  • 1 to 5 year terms
  • Up to 80% government backed
  • You do not need a personal guarantee for loan amounts under £250,000
  • You could qualify for 12 months interest free payments and no payments for the first 12 months
CBILS eligibility

CBILS Application Criteria

  • You must be a UK based business
  • Your turnover must be under £45m
  • Your company must have been in a profitable financial position prior to the pandemic
  • Your company must have been trading for at least 3 years

Frequently Asked Questions

Who can access the scheme?

Sole traders, partnerships & members of a limited liability partnership. You must be a UK based business with an annual turnover under £45 million.

Will I need a personal guarantee for my CBILS application?

No, as of 6/6/2020 no personal guarantees are required for loan amounts under £250,000.

Can I defer loan repayments?

Yes, you may qualify for no payments for the first 12 months of your agreement.

Can I apply for interest free payments?

Interest for the first 12 months of your agreement is covered by the government.



Although this is a government backed scheme, you are still liable for the full loan amount.
All applications are subject to status and assessed on a case to case basis.

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