The British Business Bank have this morning released full details Coronavirus Business Interruption Loan Scheme (CBILS).
Below is a summary of the key points:
• The government has confirmed that it will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs
• Available to UK-based businesses with annual turnover of up to £45m per year
• All 40+ accredited lenders will be ready to provide CBILS today.
• New: There will be an expedited process for overdrafts – no fees or interest 12 months. 6/7 lenders will be available to provide this from today.
• Eligibility criteria widened – aim to not turn down otherwise viable businesses which have been hit by the Coronavirus.
• They are moving away from EU State aid de minimis. ‘Membership’ organisations can now use CBILS, some other sectors restrictions have also been dropped. Awaiting more detail.
• No guarantee fee for SMEs to access the scheme.
• At the discretion of the lender, the scheme may be used for unsecured lending for facilities of £250,000 and under
• Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
• Those business that are growing won’t be subject to CBILS – even if they are helping to combat Covid-19.
Further information Coronavirus Business Interruption Loan Scheme (CBILS)