Coronavirus Business Interruption Loan Scheme
Financial support for
Unlock up to £5 million, depending on turnover
- For smaller businesses with a turnover of less than £45 million.
- Business loans and asset finance available.
- First 12 months of interest and lender-levied fees covered.
We’re here to help get things moving
The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses (SMEs) across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.
The scheme is a part of a wider package of government support for UK businesses and employees.
How CBILS works
British Business Bank operates CBILS via its accredited lenders. As an accredited lender we can provide up to £250,000 in the form of:
- business loans
- asset finance
CBILS gives the lender a government-backed guarantee for the loan repayments to encourage more lending.
The borrower remains fully liable for the debt.
You can also find answers to frequently asked questions through the British Business Bank’s FAQs.
CBILS key features
Borrow from £50,001 to £250,000
Interest rates up to 14.5%
Capital payments only for the first 12 months
Repayment over 6 years
No upfront or early settlement fee
No personal guarantee required
for CBILS loans up to £250,000
More about CBILS
- Up to £5m facility: The maximum value of a facility provided under the scheme is £5m, available on repayment terms of up to six years.
- No guarantee fee for SMEs to access the scheme: No fee for smaller businesses.
- Interest and fees paid by Government for 12 months: The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees1, so smaller businesses will benefit from no upfront costs and lower initial repayments.2
- Finance terms: Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
- Guarantee to the lender: The scheme provides the lender with a government-backed, guarantee against the outstanding facility balance. The borrower always remains 100% liable for the debt. Principal Private Residence (PPR) – A borrowers/guarantors PPR cannot be taken as security to support a Personal Guarantee or as security for a CBILS backed facility.
- The borrower always remains 100% liable for the debt.
Additional notes on security:
- 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. A Principal Private Residence (PPR) cannot be taken as security to support a personal guarantee or as security for a CBIL backed facility.
- Security: For all facilities, including those over £250,000, CBILS can now support lending to smaller businesses even where a lender considers there to be sufficient security, making more smaller businesses eligible to receive the business interruption payment3.
Is your business eligible?
Check if you are eligible for a CBILS loan by answering a few simple questions.
You won’t be able to apply if you are:
- A bank, insurer or reinsurer (but insurance brokers can apply)
- A public-sector body
- A state-funded primary or secondary school
We are currently experiencing extremely high volumes of new CBILS and BBLS applications and would like to ask all applicants to please bear with us as we work through the volume.
What this means for you is that we may not necessarily get in touch with you right away. When we do get in touch with you we may require additional information.
Managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government.
It is not authorised or regulated by the PRA or the FCA. Visit British Business Bank website.