Similar to the Bounce Back Loan, The Coronavirus Business Interruption Loan Scheme (CBILS) is designed to support those who have lost revenue as a direct result of Covid-19. It is aimed at business with a turnover of up to £45 million and differs primarily in the size of loan available – from £50,001 to £5 million – and how the loan is structured.
- Loans available from £50,001 – £5 million
- Government pays the interest and fees on your loan for the first 12 months
- Loan length of between three and six years depending on the structure
- Structures can include a term loan, overdraft, invoice finance facility or asset finance facility
- No set up costs
- Personal Guarantees may be required if the borrowed amount exceeds £250,000
- Security excludes the Principal Private Residence (PPR) and recoveries under these are capped at 20% of the outstanding balance of finance, after the proceeds of business assets have been applied
- The Government backs 80% of the outstanding balance of the finance.
Eligibility for the loan is primarily taken on trust. You must self-declare that your business:
- Has been impacted by the coronavirus pandemic
- Was established before 1st March 2020
- Was not in difficulty prior to the outbreak (i.e prior to 31st December 2019) or currently in the insolvency process
- Does not have a borrowing proposal which the lender would consider viable, were it not for the current pandemic
- Is engaged in trading or commercial activity in the UK and derive at least 50% of its income from those activities
- Is not a bank, insurer or reinsurer, public sector body or state funded primary or secondary school.
How to apply
The application process is more detailed: you will need to confirm the amount you would like to borrow and detail what the money is for.
Your application will need to be supported with management accounts, a business plan, and details of current assets, although not all lenders have the same criteria: some may request more information; some less.
To find a lender, check out the accredited lenders’ list or engage with a broker such as Touch Financial who can help with documentation required for each lender and in sourcing multiple offers for you at the same time should an application be declined.
Call us now on 0203 5877700 or fill out the form and one of our consultants will get in touch.
What our clients say
"Covid-19 has been a difficult time for most, had it not been for Kirsty I feel we would still be working through CBILS applications and going back and forth with banks. We just found it so much easier and reassuring to leave everything to her to manage for us. We appreciated the transparency with regards to managing our expectations and making sure she did what was right for us as a company. I have referred Kirsty to a few colleagues who have all had positive experiences. Many thanks to you Kirsty and the team at Touch for helping us during such a difficult time!"
Vishal Patel - Hospitality
"I was dealing with Kirsty Mills and she was fantastic. the level of service, knowledge and transparency made the process so easy and smooth. Always responsive to emails and calls. Was always working with you which is really important."
Manan Shah - Leisure Industry
"They were able to quickly assess my business' primary operation and provide tailored recommendations based on the information I provided. Sourcing a suitable financing solution to meet my company's needs within the space of a 15 minute phone call. Kept in touch to ensure that the process was running smoothly. Highly recommended."
Callum in London