CBILS is a government-backed lending initiative created to help businesses affected by coronavirus with funding.
Finance is delivered via the British Business Bank and through accredited providers. We work with a number of CBILS lenders so you can apply for a CBILS loan directly with us. Simply tell us your company name and we’ll find you the best options for your business.
If you’re looking for information on Bounce Back Loans, read our guide here.
How does the Coronavirus Business Interruption Loan Scheme (CBILS) work?
The government provides a guarantee for lenders of up to 80% of each loan (subject to an annual per-lender cap on overall loans) to enable them to fund small businesses that would otherwise have insufficient security to meet the lender’s normal requirements.
It’s worth noting that while the government is providing a guarantee to the lender, businesses still remain liable for 100% of the debt.
There are no fees for businesses or lenders for participating in the scheme and businesses will benefit from lower initial repayments as the government will cover any loan interest for the first 12 months (although you will still remain liable for the capital payments).
The range of finance options include asset finance (raising money against your existing assets), invoice finance (raising money against outstanding invoices), term loans (traditional business loans with fixed repayments) and overdraft variants (like personal overdrafts but for business).
What is the deadline for CBILS applications?
The scheme has just been extended again. The application process is now open until 31 March 2021.
Who is eligible for the loan?
The criteria has been listed as follows:
- Small businesses must be UK-based and have a turnover of no more than £45m a year. (For larger businesses with turnover of £45m-£500m there is the Coronavirus Large Business Interruption Loan Scheme).
- You must operate within an eligible sector (a small number of industrial sectors are not eligible for support, full information on this can be viewed here.)
- You no longer need to have inadequate security to meet a lender’s normal requirements – but you must still have a sound borrowing proposal and certify that your business has been adversely impacted by the coronavirus.
- You must be able to confirm that you have not received other public money given in the form of a grant beyond €200,000 equivalent over the previous three years.
How much can I borrow?
The amount you can borrow under the scheme will range from £1,000 to £5m. For term loans and asset finance, the finance terms will vary from three months to up to 10 years and the revolving facilities will be available for up to three years.
However, whilst the upper limit for the CBILS is £5m, individual lenders continue to be restricted by their maximum lending policy. Some lenders will be able to offer the full £5m, whilst others will be more limited. Contact our team at Fluidly to discuss the available options.
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) can lend up to £25m.
How do I apply for the CBILS?
For a business, the process is very similar to a normal funding application. You still apply directly with a lender, or multiple lenders, and they will assess whether they can finance you.
Finance providers can support lending even where a lender deems a business to have sufficient security for a normal commercial loan.
Decision-making on eligibility lies with the individual lenders.
You can apply for a CBILS loan through our funding proposition here.
Can I apply through multiple lenders?
As stated above, you can apply through multiple lenders. You don’t need to go with your main bank. You can also apply for multiple CBILS loans if you own multiple companies.
Will I need to provide a personal guarantee?
For loans under £250,000, lenders across the scheme are no longer allowed to ask for personal guarantees. For businesses borrowing more than £250,000 through CBILS, personal guarantees will be capped at 20% of the outstanding loans balance.
Which lenders are offering the scheme?
There are over 70 accredited (including more alternative) lenders currently participating in the scheme.
At Fluidly, we are working with a number of CBILS lenders, you can find out more about our smart, fast, hassle-free funding here.
What’s the difference between the Enterprise Finance Guarantee and the CBILS?
The original Enterprise Finance Guarantee scheme only allowed the lender a government-backed guarantee of up to 75%, under the CBILS it is 80%.
The max limit on an EFG loan was £1m, the CBILS has increased this to £5m.
Small businesses supported by the EFG were required to pay a 2% annual fee to the government as a contribution towards the cost of the scheme. The new CBILS has no fees for lenders or businesses.
Could the money in the scheme run out?
The scheme has already been extended several times now, since launching in March. Chancellor Rishi Sunak has promised that if demand exceeds the initial £330bn, he will extend the amount further to provide as much capacity as required.
When will I have to pay the money back?
The finance terms will depend on each lender, and the product type.
Can I apply for the scheme if my business is loss-making?
Lenders will want your business to demonstrate that it was viable prior to the coronavirus outbreak – and in a lot of cases this will mean showing profitability. If you’re currently loss-making you may still be eligible, but you would need to be able to show a level of certainty of future profitability.
Where can you find out more information?
There’s lots of information on The British Business Bank website. Alternatively you can contact individual lenders.
Do you need funding now?
Fluidly is working with a number of CBILS lenders. If you’re a small business owner looking for funding, find funding options below in just 30 seconds.
