The CBIL Scheme
A new temporary Coronavirus Business Interruption Loan Scheme (CBILS), delivered by the British Business Bank, has been launched in the UK. The government is providing lenders with a guarantee of 80% on each loan to give lenders further confidence in continuing to provide finance to SMEs. The Scheme is supporting loans of up to £5m (previously announced at £1.2m in the budget), and the government will not be charging businesses or banks for the guarantee.
This new guarantee will initially support up to £330 billion of lending on top of current support offered through the British Business Bank. The new CBILS scheme is also offering interest holidays of 12 months. It will temporarily replace the Enterprise Finance Guarantee, and operate in a similar way to EFG and be provided by the British Business Bank. This 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 Coronavirus pandemic.
To be eligible for support via CBILS, the small business must:
- Be based in the UK based, with annual turnover below £45 million
- Operate within an eligible industrial sector
- Have a sound borrowing proposal, but insufficient security to meet a lender’s normal requirements.
How to access the CBIL
- There are 40 accredited lenders that are able to offer the scheme, including all the major banks.
- Find out how to to apply
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