Coronavirus (COVID-19)

Coronavirus Business Interruption Loan Scheme (CBILS)

UPDATED 3 APRIL 2020

View our other COVID-19 guidance pages:

This programme is very similar to the Enterprise Finance Guarantee scheme (EFG) (read our EFG blog here) whereby the Government will guarantee 80% of the outstanding balance. 

In addition the Government will pay the first 12 months interest, lender-levied fees and there is no guarantee fee

Please note that this guarantee protects the bank, not the borrower. The borrower remains liable for the full outstanding balance.

The maximum value of any facility under the scheme is now £5 million (originally £1.2m). Repayment terms are up to six years for term loans and asset finance and up to three years for overdrafts and invoice finance facilities.

The programme is provided by the British Business Bank which operates through a number of what are referred to as ‘participating providers’ or ‘accredited lenders’ a list of which can be found on the British Business Bank website

It includes all the high street banks such as Barclays, HSBC, NatWest, Metro, Lloyds, RBS, Santander. There are 22 participating partners in our region (broadly South East/London).

Borrowers need to approach the lenders not the British Business Bank.

The Government has now stated that all businesses that are affected by COVID-19 should be offered loans under the scheme and not standard commercial overdrafts and loans.

Crucially lenders are now banned from asking for personal guarantees on loans below £250,000.  This measure is retrospective.

To be eligible for the scheme your business must:

  • Be UK based
  • Have less than £45m in annual turnover
  • Have a proposition that the bank considers would be commercially viable if it were not for the current pandemic
  • Have been adversely impacted by COVID-19 (this is a self certify)

All businesses are eligible except:

  • Public-sector
  • Further education bodies that are grant funded
  • State funded primary and secondary schools
  • Banks
  • Insurers and re-insurers (insurance brokers are eligible)

Please note that this is a loan and not a grant.

You will need to approach this in the same way as you would approach any borrowing request and need to provide a business plan, management accounts, cashflow forecast and historic accounts.

For more guidance or if you need us to help with your application, contact us

As you will appreciate the situation is constantly evolving but to speak to our specialist team please contact ATN on 01474 326224. Alternatively, visit the website;  tweet @atnpartnership or email  info@atnpartnership.co.uk 

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