The Coronavirus Business Interruption Loan Scheme is supporting business loans of up to £5 million for SMEs through the British Business Bank in response to economic hardship caused by the Coronavirus outbreak.
The CBILS is operated via British Business Bank accredited lenders, such as high street banks. These lenders can provide up to £5 million in the form of the following:
- Invoice Finance
- Asset Finance
- Overdrafts
- Term Loans
Whilst loans granted under the CBILS provide the lender with a guarantee backed by the government, the borrower remains fully liable for the debt repayment terms.
Who is eligible for a Coronavirus Business Interruption Loan?
To be eligible for an emergency loan as part of the Coronavirus Business Interruption Loan Scheme, as a rule, the following criteria must be met:
- The loan must be used for business purposes
- Must have an annual turnover of no more than £45 million
- The business must be UK based in its business activity
- Must generate more than 50% of its turnover from trading activity
Businesses from any sector can apply, except the following:
- Banks and building societies
- Insurers and reinsurers (excluding insurance brokers)
- Public-sector organisations, including state funded schools
- Employer, professional, religious or political membership organisations
- Trade Unions
However, eligibility criteria aren’t quite as straightforward as it might seem so we have prepared a separate article for that.
Please note: Ringrose Business Finance is a business finance brokerage, however, we are not able to broker a business loan provided in line with the Coronavirus Business Interruption Loan Scheme (CBILS), neither are we able to give you specific CBILS financial advice. The information provided here is designed as a guide to help you. Please do not solely rely on the information provided on this page.
Who can help you?
For advice you should should speak to an accredited financial advisor or lender, Government body or accountant (as noted above). To find your own accredited lender or partner, talk to us or visit the Accredited Lenders and Partners page published by the British Business Bank.
Getting a Business Loan in 2020
For more information about Government Backed, Non-Government Backed and Personal Loans at this time please see the following page: Business Loans During the Coronavirus Crisis