The Coronavirus Business Interruption Loan Scheme (CBILS)

For SME’s losing revenue due to COVID-19, the government backed Business Interupption Loan Scheme offers loans, asset based finance and invoice finance.

CBILS is effectively an updated version of the Enterprise Financial Guarantee scheme which was already in existence. Many businesses failed to access that scheme, however, due to a lack of security. The government has made it clear that this won’t be the case this time round.

The scheme will be fully operational by 6/4/2020.

Who is Eligible for the CBILS Scheme?

  • Your business is based in the UK and you trade primarily in the UK
  • Your application is for business purposes only
  • Your turnover does not exceed 45 million
  • You wish to borrow no more than 5 million

Which Sectors are not Eligible for the CBILS Scheme?

  • Public sector
  • State funded educational establishments (primary, secondary, or further-education)
  • Banks, insurance companies and reinsurers

How Do I Apply for the CBILS Finance for My Business?

Firstly, you must choose an accredited lender: here

Ensure the lender you select offers the type of finance you need, not all of them do.

Apply director via the lenders own websites, obviously bearing in mind there is going to a high demand for this so waiting times should be expected.

Personal Guarantees

While most financial providers would always ask for personal guarantee documents, they will not in this case for amounts up to £250,000.

What if the CBILS Lender Turns Us Down?

You can still apply to any others on the list.

What Information Will I Need to Have on Hand Before Applying to the CBILS Scheme?

  • Up to date business accounts
  • Cash flow forecast for the next 12 months
  • A business plan outlining what you will do with the money
  • Historical Accounts (last 3 years)
  • Details of any business assets

NB: the above list will vary from lender to lender. If you don’t have assets, for example, you can still apply for the loan, they are trying to make this as inclusive as possible for the good of the British economy.

Especially where amounts needed are smaller, you should expect the application process to be automated, so it may be fairly easy to apply.

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