New Coronavirus Business Interruption Loan Scheme opens to smaller businesses across the UK

Date posted: March 23, 2020
Share
coronavirus-4833754_1920

Announced by the Chancellor at Budget 2020, the Coronavirus Business Interruption Loan Scheme (CBILS) opens for applications today and can provide facilities of up to £5m for smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cash flow.

Delivered by the British Business Bank, through 40+ accredited lenders and partners, the Coronavirus Business Interruption Loan Scheme will support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak.

Although the Budget announced that an initial £1.2bn of government-backed lending would be available through the new scheme, the government has since announced that it will be demand-led and will be resourced accordingly.

Scheme features

The Coronavirus Business Interruption Loan Scheme supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities. The scheme provides the lender with a government-backed guarantee, potentially enabling a ‘no’ decision from a lender to become a ‘yes’.

  • Up to £5m facility: The maximum value of a facility provided under the scheme will be £5m, available on repayment terms of up to six years.
  • 80% guarantee: The scheme provides the lender with a government-backed, partial guarantee (80%) against the outstanding facility balance, subject to an overall cap per lender.
  • No guarantee fee for SMEs to access the scheme: No fee for smaller businesses. Lenders will pay a fee to access the scheme.
  • Security: At the discretion of the lender, the scheme may be used for unsecured lending for facilities of £250,000 and under. For facilities above £250,000, the lender must establish a lack or absence of security prior to businesses using CBILS. If the lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.

Find out more including eligibility criteria

Share

Keep Updated

Latest News & Events

Screenshot 2023-09-27 at 15.05.36

Green Growth

Sep 27 2023

New report raises concerns about the geographic reach of net zero business support, with the Midlands having a mixed set of results.

A new report, published this week has raised concerns about the accessibility and reach of net zero business support schemes available in England.

Read more
Innovative Leicestershire[63]

Health

Sep 26 2023

Innovative Leicestershire – A Life Sciences Success Story

A Charnwood Campus Cluster event in partnership with Medilink Midlands, part of a series of events to celebrate the achievements and support the growth of the life science organisations clustered around Charnwood Campus Science, Innovation and Technology Park.

Read more
Derby University Institute of Technology

Digital

Sep 19 2023

First East Midlands Institute of Technology site opens in Derby

A new state-of-the-art facility for computing students, which will support the teaching of a range of digital and engineering subjects, such as computer games animation, design engineering and mechatronics has opened at the University of Derby’s Enterprise Centre.

Read more
An electric vehicle charging

Subscribe to Midlands Matters, the newsletter of the Midlands Engine