What is CBILS?
The CBILS scheme is a temporary replacement for the EFG loan scheme. It will provide funds for businesses experiencing lost revenue and cash flow disruption due to the COVID-19 crisis.
When can I access the scheme?
As of Monday 23/03/2020 the scheme is open and will run for 6 months.
How does it work?
The loans will be provided by affiliated lenders, who will pay a fee to access the scheme, with a guarantee from the government of up to 80% of the facility balance.
It will cover amounts up to £5m, with terms of up to 6 years for term loans and asset finance and three years for overdrafts and invoice finance.
The Government will cover the first 12 months of interest fees as well as any fees levied by the lender, although most lenders have agreed to waive fees for SMEs.
Primary residential property cannot be used as security under the CBILS scheme.
The lender will have final say on whether the loan can be actioned, the borrower will remain liable for the debt.
What products are covered?
• Term facilities
• Overdrafts
• Invoice finance facilities
• Asset finance facilities
Is my business eligible?
All businesses are eligible to apply apart from the following trades and organisations – banks, building societies, insurers, state funded schools, religious or political organisation or trade unions.
To apply businesses must be UK based and have a yearly turnover of below £45m.
The scheme is only available to viable businesses. Your business must be able to prove that, were it not for COVID-19 they would still be considered viable and be able to trade out of short to medium term difficulty. As mentioned above, the lender has final say, so be sure to provide all relevant info up front.
How can I access CBILS?
There are 40 accredited lenders listed on The British Business Bank website, link above.
Your own provider will be able to give you the most relevant information for your business first and, if you cant access funds through them, we would then advise approaching alternative lenders.
Due to increased demand we would advise applying online via the lender’s website.
I have an existing EFG facility, do I need to do anything?
The EFG scheme is suspended for the time being. If you have a query regarding your EFG facility, please contact your current provider.
Can CBILS be used alongside other government aid?
Yes, you can still apply for CBILS alongside other government support including business rate reliefs or grants.
