What is it?
This scheme delivered by the British Business Bank, will enable small and medium sized businesses to apply for a loan, up to £5m, with the government providing a guarantee of 80% on each loan and with no interest due for the first twelve months. CBILS supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities. The scheme will be delivered through commercial lenders, backed by the British Business Bank. CBILS is now open for applications.
NEW: Updated scheme features: 2 April 2020:
- Access to CBILS has been increased: those smaller businesses who would have previously met the requirements for a commercial facility but would not have been originally eligible for CBILS can now apply.
- 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.
These changes should be retrospectively applied by lenders for any CBILS facilities offered since its launch on 23 March 2020.
Eligibility: A link to British Business Bank’s eligibility checklist can be found here. The borrower remains fully liable for the debt.
What do I need to do to access it?
A guide how to apply can be found here.
An FAQ on CBILS can be found here.
Who do I need to speak to?
You should speak to your business banking provider or one of the accredited lenders. With high demand for CBILS facilities, finance providers recommend that you approach a lender via their website. Phone lines are likely to be busy and branches may not be able to handle enquiries in person.
