The Coronavirus Business Interruption Loan Scheme (CBILS) supports small and medium-sized businesses, with an annual turnover of up to £45 million, to access loans, overdrafts, invoice finance and asset finance of up to £5 million for up to 6 years.
The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees. This means smaller businesses will benefit from no upfront costs and lower initial repayments.
The government will provide lenders with a guarantee of 80% on each loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to small and medium-sized businesses.
The scheme is delivered through commercial lenders, backed by the government-owned British Business Bank.
Who is it for?
Any business that is UK-based and has an annual turnover of up to £45m; have a borrowing proposal which the lender would consider viable, were it not for the COVID-19 pandemic.
How do you apply?
You should apply via your usual lender’s website or through one of the 40 accredited commercial lenders. It is available now through all major banks.