The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.
It provides loans worth up to £5m to those which are experiencing lost or deferred revenues, leading to disruptions to their cashflow. This can be in the form of term loans, overdrafts, invoice finance and asset finance facilities.
The British Business Bank operates CBILS through accredited lenders. These include high-street banks, challenger banks, asset-based lenders and smaller specialist lenders including the Northern Powerhouse Investment Fund’s Microfinance and Debt finance providers who alongside the other NPIF Fund Managers continue to make loans and investments during the crisis to both new and existing applicants.
What types of businesses is CBILS for?
With the new expanded eligibility criteria, CBILS is designed to support a wide-range of smaller businesses (i.e. with an annual turnover of less than £45m) across the UK who are impacted by the Coronavirus crisis.
Access to the scheme has been opened up to those smaller businesses who would have previously met the requirements for a commercial facility but would not have been eligible for CBILS. This significantly increases the number of businesses eligible for the scheme.
Is the scheme appropriate for Start-ups?
Potentially, if your business activity is primarily UK-based. For early stage businesses, which are in their first three years of trading and looking for loans between £500 and £25,000, the British Business Bank’s Start Up Loans programme may be more suitable. Visit www.startuploans.co.uk for more information.
How do I know if I’m eligible to apply?
Smaller businesses from all sectors can apply for the full amount of the facility, up to a maximum of £5m. Businesses based in the UK with annual turnover of no more than £45m are eligible, but you must ensure you have a strong borrowing proposal.
Importantly, access to the scheme has now been opened up to smaller businesses facing cashflow difficulties who previously would not have been eligible for CBILS because they met the requirements for a standard commercial facility.
How can I access the scheme?
CBILS is available through the British Business Bank’s accredited lenders, which are listed on the British Business Bank website.
In the first instance, businesses should approach their own provider – ideally via the lender’s website. They may also consider approaching other lenders if they are unable to access the finance they need.
NPIF’s Microfinance fund managers and Debt finance fund managers are able to make CBILS loans, so feel free to get in touch with the teams at:
FW Capital: Liverpool City Region, Greater Manchester, Lancashire, Cheshire and Warrington, Cumbria, Tees Valley
Mercia: Yorkshire & Humber
GC Business Finance: Greater Manchester, Cumbria. Lancashire, Cheshire and Warrington
MSIF: Liverpool City Region
Finance For Enterprise: Sheffield City Region and Humber
Business Enterprise Fund: Leeds City Region, York, North Yorkshire, East Riding and Tees Valley
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
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