Department for Business, Energy & Industrial Strategy (BEIS)
This scheme is funded by the Government and delivered by the British Business Bank.
At Budget 2020, the Chancellor announced that the Coronavirus Business Interruption Loan Scheme (CBILS) will temporarily replace the Enterprise Finance Guarantee (EFG).
Objectives of Fund
The Coronavirus Business Interruption Loan Scheme (CBILS) will support, primarily, small and medium-sized businesses to access bank lending and overdrafts during the coronavirus outbreak.
The scheme will operate in a similar way to the Enterprise Finance Guarantee (EFG) scheme, but will offer more attractive terms for both businesses and lenders, with the aim of supporting the continued provision of finance to UK businesses during the Covid-19 outbreak.
The scheme facilitates business finance to smaller businesses that are viable but unable to obtain finance due to having insufficient security to meet the lender’s normal requirements. The borrower always remains 100% liable for the debt. In this situation, CBILS provides the lender with a government-backed 80% guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’.
CBILS supports a range of business finance products, including:
To apply for an CBILS-backed facility, businesses may wish to consider approaching one or more participating lenders to discuss their borrowing needs.
The scheme will support loans of up to £5 million in value. Businesses can access the first six months of that finance interest free, as Government will cover the first six months of interest payments.
The Government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The Government will not charge businesses or banks for this guarantee.
As well as loans, there are many other types of finance supported by the programme, depending on the provider. Interested parties can find out what type of finance they provide on this partner page.
Who Can Apply
To be eligible for support via CBILS, the small business must:
Be UK based, with turnover of no more than £41 million per annum.
Operate within an eligible industrial sector.
Have a sound borrowing proposal, but insufficient security to meet a lender’s normal requirements.
Be able to confirm that they have not received de minimis State aid beyond €200,000 equivalent over the current and previous two fiscal years.
The British Business Bank is in the process of defining and agreeing the scheme’s final details. Specifications and eligibility and therefore information is subject to change.
Maximum number of employees must not exceed 249.
Annual turnover of up to £41 million.
How To Apply
The scheme is yet to open.
Further details, including on the lenders providing access to this scheme will be announced in the coming days, and the scheme will be available from early week commencing 23 March 2020.
Useful documents & links
Addresses and contacts
For further information on how to obtain this grant locally, please contact the following:
The British Business Bank
Tel: 0114 206 2131
Email: [email protected]