The Coronavirus Business Interruption Loan Scheme (CBILS) is now available.
The British Business Bank has published further details of how to access CBILS and eligibility criteria.
- You must be applying for business purposes.
- Your proposal would, in other circumstances (if COVID 19 hadn’t occurred), be considered viable, and the lender must believe that the lending will enable your business to trade out of any short to medium term difficulty.
- You must be a UK based SME with an annual turnover of up to £45 million.
- You must generate more than 50% of your turnover from trading activity.
- You must use the facility primarily to support trading in the UK.
- You can borrow up to £5 million.
- Term loans and asset finance can be taken out over a 6 year period.
- Overdrafts and invoice discounting facilities can be take out over a 3 year period.
- The Government has said it will make a ‘business interruption payment‘ to cover the first 12 months of interest payments, and any fees charged by lenders.
- Lenders may lend under CBILS without security for borrowing of £250,000 or less.
- For borrowing of more than £250,000, there must be insufficient or no security for a facility to be made available under CBILS.
Further details of CBILS can be found via this link https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/