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British Business Bank launches full details of Business Interruption Loan Scheme

The British Business Bank have this morning released full details Coronavirus Business Interruption Loan Scheme (CBILS). Below is a summary of the key points:

Following the Chancellor's announcement of the Coronavirus Business Interruption Loan Scheme, the British Business Bank has today launched the scheme with 40+ accredited lenders

British Business Bank launches full details of Business Interruption Loan Scheme

 

 

 

  • Given there is likely to be a big demand for facilities once the scheme goes live, the British Business Bank is asking you to please:

    • Consider applying via the lender’s website in the first instance. Telephone lines are likely to be busy and branches may have limited capacity to handle enquires due to social distancing
    • Consider the urgency of your need – it is possible that some businesses may be looking for regular longer-term finance rather than ‘emergency’ finance, and there may other businesses with a more urgent need to speak with a lender
  • 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 will be 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.

FAQs

I have had de minimis aid in the past, can I still get a loan?
Yes, as long as you meet the scheme's eligibility criteria. Any previous de minimis state aid does not impact your eligibility for CBILS and does not need to be taken into account by the Lender. CBILS operates as a notified scheme rather than under de minimis as EFG did. There is no interaction between any de minimis state aid previously received by a business and the size of the CBILS facility they can access, should they be eligible.

Click here for detailed CBILS FAQs for SMEs
Click here for application details for Business
Click here for details of Accredited Lenders
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