Update: 28th September 2020
The Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS) have been extended until 30th November 2020 for new applications. CBILS lenders are also being given the option of extending the length of their loans from a maximum of six years to ten years to help businesses to repay the loan.
Coronavirus Business Interruption Loan Scheme
The Coronavirus Business Interruption Loan Scheme (CBILS) offers financial support for small and medium-sized businesses whose cash flow has been affected by the COVID-19 pandemic. The scheme allows SMEs to access up to £5 million in loans and other financial support. Under CBILS, the government will cover the cost of the first 12 months of fees and interest, as well as guarantee 80% of the loan to the lender.
To be eligible, an SME must:
- Be based in the UK
- Have an annual turnover of £45 million or less
You also need to show that:
- Your business would be viable if not for the pandemic
- Has been negatively impacted by COVID-19
If you need to borrow more than £30,000, you need to prove your business was not classified as a “Business in Difficulty” on 31st December 2019.
For more information on CBILS, visit the gov.uk website.
Coronavirus Large Business Interruption Loan Scheme
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) will allow mid-sized and larger businesses to benefit from government support. The CLBILS will provide a government guarantee of 80%, allowing banks to offer loans of up to £200 million to businesses with a turnover between £45 million and £500 million a year. Loans offered under this scheme are available at commercial rates of interest. Finance terms are from three months to three years
To be eligible, you must:
- Be UK based in their business activity
- Have an annual turnover of more than £45 million
- Have a borrowing proposal which, were it not for the current pandemic, would be considered
viable by the lender, and for which the lender believes the provision of finance will enable the
business to trade out of any short-to-medium term difficulty
- Not have received a facility under the Bank of England’s Covid Corporate Financing Facility
(CCFF), or CBILS, or BBLS.
- Lenders will need further information to confirm eligibility. All lending decisions remain fully
delegated to the accredited lenders.
Click here to find out more.
Corporate Financing Facility
This scheme helps large businesses affected by COVID-19 through the purchase of their short-term debt.