Business Interruption Loan Scheme
Who does the scheme help?
The Coronavirus Business Interruption Loan Scheme (CBILS), provides financial support to smaller business affected by Coronavirus (Covid-19).
The scheme helps small and medium sized businesses to access loans and other kinds of finance up to £5 million.
The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.
You can apply for a loan if:
- your business is based in the UK; and
- has an annual turnover of up to £45 million.
You need to show that your business:
- would be viable were it not for the pandemic; and
- has been adversely impacted by the coronavirus.
If you want to borrow £30,000 or more, you also need to confirm that your business wasn’t classed as a business in difficulty on 31 December 2019.
Who cannot apply
The following businesses are not eligible to apply:
- banks, insurers and reinsurers (not including insurance brokers);
- public-sector bodies; and
- state-funded primary and secondary schools.
How long is the loan for
The maximum length of the facility depends on the type of finance you apply for and will be:
- up to 3 years for overdrafts and invoice finance facilities; and
- up to 6 years, for loans and asset finance facilities.
How to apply
There are over 50 lenders participating in the scheme including all the main retail banks. You should approach a suitable lender yourself via the lender’s website.
You’ll need to tell the lender:
- the amount you’d like to borrow;
- what the money is for; and
- how long you’d like to pay it back.
For further information and to secure a lender please visit GOV.UK.
Flexibility to pay back loans
A new Pay as You Grow flexible repayment system has also been introduced to provide flexibility for firms repaying the Bounce Back Loan.
This includes extending the length of the loan from six years to ten, which will cut monthly repayments by nearly half. Interest only periods of up to six months and payment holidays will also be available to businesses.
Coronavirus Business Interruption Loan Scheme lenders will also be given the ability to extend the length of loans from a maximum of six years to ten years, if it will help businesses to repay the loan.
The Coronavirus Business Interruption Loan Scheme application will now be extended to the end of January 2021.