The Coronavirus Business Interruption Loan Scheme (CBILS) is a government initiative to help UK small businesses affected by coronavirus to access finance and is open for applications until 31st March 2021. The Coronavirus Business Interruption Loan Scheme allows small UK businesses (SMEs) to borrow £50,001 to £500,000 to manage the financial impact of COVID-19.
Delivered by the British Business Bank, through 40+ accredited lenders and partners such as Funding Circle, the Coronavirus Business Interruption Loan Scheme will support the continued provision of finance to UK smaller businesses (SMEs) during the COVID-19 outbreak.
Business Secretary, Alok Sharma said: “We know that businesses are in urgent need of access to funding during these unprecedented times. The Coronavirus Business Interruption Loan Scheme will make it easier for banks to lend and businesses to borrow. This will ensure that credit keeps flowing to where it is needed, when it is needed.”
So, what’s on offer?
- Borrow £50,001 to £500,000 to manage the financial impact of COVID-19
- No repayments for the first 12 months (the Government will pay the interest during that time)
- Nothing to pay until 2022
- No upfront or early settlements fees
- Quick and easy to apply online
- Receive a fast decision in as little as 5 hours
Use your Coronavirus Business Interruption Loan (CBILS) to:
- Manage your cash flow and pay off your existing business loans with a 12-month interest-free loan (with no upfront fees)
- Strengthen the IT and technology within your business to ensure business productivity and continuity throughout 2021
- Improve your employees’ experience working from home by investing in remote working technology and services, such as laptops and cloud technology
- Use your CBILS loan to invest in research and development within your business, look at ways you can improve your IT and technology
- Use your loan to invest in a project to improve business productivity. IT-specific projects could include a migration to the cloud or improving network security
Smaller businesses from all sectors can apply for the full amount of the facility. To be eligible for a facility under CBILS, an SME must meet the following criteria:
- UK-based business that’s been adversely affected by coronavirus
- Turnover of over £200,000 (up to £45 million)
- Minimum 3 years of trading history
- Over 50% of turnover from trading activity
- Loan is for business purposes
- Loan is primarily for trading in the UK
- Your business would be viable were it not for the pandemic
- Your business has been adversely impacted by the coronavirus
If the lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.
How to apply
The Coronavirus Business Interruption Loan Scheme (CBILS) is available through the British Business Bank’s 40+ accredited lenders and partners, including Funding Circle.
Funding Circle is accredited by the Government-owned British Business Bank to provide loans under the Coronavirus Business Interruption Loan Scheme (CBILS).
Full terms and conditions can be found on the Funding Circle website.