The Coronavirus Business Interruption Loan Scheme (CBILS) has been significantly expanded along with changes to the scheme’s features and eligibility criteria. The changes mean even more smaller businesses across the UK impacted by the Coronavirus crisis can access the funding they need.
The Coronavirus Business Interruption Loan Scheme (CBILS) can provide facilities for smaller businesses (SMEs) across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow. Delivered by the British Business Bank, through almost 50 accredited lenders and partners such as BCRS Business Loans, CBILS will support the continued provision of finance to UK SMEs during the Covid-19 outbreak.
Having insufficient security is no longer a condition to access the scheme and personal guarantees are not required on facilities under £250,000. The scheme provides the lender (BCRS Business Loans) with a government-backed guarantee, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’.
CBILS guarantees facilities up to a maximum of £5m available on repayment terms up to six years. The scheme provides the lender with a government-backed guarantee against the outstanding facility balance. There is no guarantee fee for SMEs to access the scheme.
The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.