Mon 23rd Mar 2020
Coronavirus Business Interruption Loan Scheme (CBILS) – Further information & FAQs for SME
The British Business Bank has this morning (23 March 2020) released full details on the Coronavirus Business Interruption Loan Scheme (CBILS).
Key points to note:
- 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.
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.