Coronavirus Business Interruption Loan Scheme (CBILS)
The temporary Coronavirus Business Interruption Loan Scheme (CBILS) supports small and medium-sized businesses with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to six years.
The Government will also 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.
The scheme will be delivered through commercial lenders, backed by the Government-owned British Business Bank.
The scheme will be available from week commencing 23 March 2020. Find out more information about the loan via this link https://www.british-business-bank.co.uk/ourpartners/supporting-business-loans-enterprise-finance-guarantee/ and the accredited lenders on this webpage https://www.british-business-bank.co.uk/ourpartners/supporting-business-loans-enterprise-finance-guarantee/efg-accredited-lenders/.
How to access the scheme
You are eligible for the scheme if:
- your business is UK based, with turnover of no more than £45 million per year
- your business meets the other British Business Bank eligibility criteria. Check the criteria via this link https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/for-businesses-and-advisors/.
The full rules of the Scheme and the list of accredited lenders is available on the British Business Bank website https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/.
All the major banks will offer the Scheme once it has launched. There are 40 accredited providers in all which you can find on this webpage https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/accredited-lenders/.
You should talk to your bank or finance provider (not the British Business Bank) as soon as possible and discuss your business plan with them. If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cash flow.
Coronavirus Large Business Interruption Loan Scheme (CLBILS)
The CLBILS was announced by the Chancellor of the Exchequer on Thursday, 16th April 2020. The new scheme provides finance to mid-sized and larger UK businesses with turnover above £45m (which is the upper limit for the existing smaller-business focused CBILS).
CLBILS can help provide facilities of up to £25m for businesses with turnover from £45m up to £250m, and facilities of up to £50m for those businesses with a turnover of more than £250m who are suffering disruption to their cashflow due to lost or deferred revenues during the Covid-19 outbreak.
The scheme will be operational with lenders from Monday 20 April 2020. Visit the CLBILS website for more information via this link https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/clbils/faqs-for-smes/.
Covid-19 Corporate Financing Facility
Under the new COVID-19 Corporate Financing Facility, the Bank of England will buy short term debt from larger companies. All non-financial companies that meet the criteria set out on the Bank of England’s website are eligible. Click through to the site via this link https://www.bankofengland.co.uk/markets/covid-corporate-financing-facility. The scheme is now available for applications. More information is available from the Bank of England on this webpage https://www.bankofengland.co.uk/markets/market-notices/2020/ccff-market-notice-march-2020
The scheme will operate for at least 12 months, and for as long as steps are needed to relieve cash flow pressures on firms that make a material contribution to the UK economy.
For further information on the full range of business support measures which have been made available to UK businesses, visit the government's Business Support website via this link https://www.gov.uk/coronavirus/business-support or use the Business Support Finder tool which can you find on this webpage https://www.gov.uk/business-coronavirus-support-finder.