What is CBILS – Coronavirus Business Interruption Lending Scheme?
The Coronavirus Business Interruption Lending Scheme, or CBIL Scheme, is Government loan scheme to help UK SMEs impacted by coronavirus to access business finance.
Under the CBIL scheme, the Government will pay the first 12 months of interest on a CBIL loan and many lenders also offer a complete principal repayment holiday for the first 12 months. The Government payment is termed as a business interruption payment and lender documentation will detail how this claimed.
For CBILS loans below £250,000 there are no personal guarantees, for those over £250,000 the personal guarantee is capped at 20% of the loan amount. In all cases, the borrower remains liable for the full amount of debt.
What types of finance are available under CBILS?
Under the Coronavirus Business Interruption (CBIL) Scheme, businesses can access from £50,000 to £5 million (subject to lender credit approval).
For term loans and asset finance, CBIL facilities are available for up to six years.
For overdrafts and invoice discounting, CBIL facilities are available for up to three years.
When is CBILS ending?
The Coronavirus Business Interruption Lending Scheme (CBILS) has been extended until January 31 2021.
What are the CBILS eligibility criteria?
To be eligible for CBILS a business must:
- Be a UK-based in its business activity
- Have an annual turnover of less than £45 million
- Self-certify that it has been adversely impacted by the coronavirus (COVID-19)
- Not be classed as a business in difficulty
- Be credit approved by one of the accredited CBIL lenders
Can you have multiple CBIL facilities?
Subject to lender approval, a business may have more than one CBIL loan or facility as long as it does not exceed the £5 million limit, 25% of turnover, or a state aid limit of 800,000 Euros.
Can a business have a bounce back loan and a CBILS loan?
A business cannot have both a Bounce Back Loan and a CBIL loan, however, if your business already has a Bounce Back Loan you may take a CBIL as long as the Bounce Back Loan is repaid from the proceeds. It is worth noting that the personal guarantee liability may be different with a CBIL loan versus the Bounce Back Loan.
Can I apply for a CBIL loan if I’ve been declined?
Absolutely. There are more than 100 accredited lenders under the CBIL Scheme. We can support you accessing multiple lenders to help find the right finance for your business.
Can a CBIL loan be used for property companies?
Subject to meeting a lender’s credit criteria and satisfying the CBIL criteria, a firm can obtain a CBIL loan if it derives more than 50% of its income from commercial activity that generates turnover, this includes real-estate SME that generate revenue from property.
How much does a CBIL loan cost?
Each lender will quote their own price, however, the majority of lenders are priced between 6% to 15% per year. There may also be an arrangement fee charged by the lender.
Why work with Newable Finance?
Acting a finance broker, Newable Finance helps UK SMEs access the CBIL scheme by working with a panel of accredited lenders. We’ve successfully secured CBIL loans for a range of UK SMEs, a few examples of which are below:
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