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Loans available to help SME’s in the UK affected by Coronavirus

The Coronavirus Business Interruption Loan Scheme (CBILS) is a government scheme which secures bank loans for businesses with viable businesses who may need to respond to cash flow pressures during the COVID-19 outbreak. The scheme is now open for applications.

This could be the right solution for you:

  • If you are looking for financial support through the short-term uncertainty due to COVID-19;
  • Looking to increase your working capital funding;
  • Looking to expand or diversify your business.

Key features and benefits

  • A Government guarantee which secures bank loans to any viable business with a sound borrowing proposal but which lacks adequate security.
  • No fee required for a Government guarantee.
  • No loan arrangement fee or loan prepayment fee, should you wish to repay early.
  • An interest-free period of 12 months will apply.
  • No repayment of capital required during the period of 12 months from drawdown.
  • For incorporated entities: Available for sums of £10,000 to £5,000,000.
  • For sole traders and partnerships: Available for sums of £25,001 to £5,000,000.
  • The loan can be repaid over any period up to 6 years.
  • Individually negotiated interest rates.
  • Variable interest rate.

What types of finance are available?

CBILS supports a wide range of business finance facilities, including:

  • Term loans
  • Overdrafts
  • Asset finance
  • Invoice finance

 

A CBILS loan may be available to you if you:

  • operate in the UK
  • have an annual group turnover of no more than £45m
  • operate in a sector that is eligible for CBILS
You must show in your borrowing proposal that were it not for the COVID-19 pandemic, your business would be considered viable by the lender, and for which the lender believes the provision of finance will enable your business to trade out of any short-to-medium term difficulty.
 
Before contacting your lender, you can check if might be eligible here:  https://www.british-business-bank.co.uk/wp-content/uploads/2020/03/CBILS-SME-Eligibility-Check-FINAL.pdf

 

How do you access the scheme?

CBILS is available through the British Business Banks 40 + accredited lenders, which are listed on the British Business Bank website here.

In the first instance, businesses should approach their own provider – ideally via the lender’s website. You may consider approaching other lenders if you are unable to access the finance you need.

Decision-making on whether you are eligible for CBILS is full delegated to the 40+ accredited lenders.

We can assist clients in putting together the information needed for this.

Talk to us:

We have a dedicated Coronavirus Team, who are on hand to help you to understand the financial impact that Covid-19 will have on your business. They will help provide an overall picture through careful cash flow and tax planning.

Contact your normal WR Service Delivery Manager in the first instance to discuss how we may be able to assist or visit our Contact Us page.

See other Coronavirus Updates here.

Terms and conditions

No guarantee fee for SMEs to access the scheme: No fee for smaller businesses. Lenders pay a fee to access the scheme.

Some lenders have indicated that they would not charge arrangement fees or early repayment charges to SMEs borrowing under the scheme.

Excluded sectors incl. Banking, Finance & Associated Services (except professional services); Formal Education (except vocational training); Insurance & Associated Services (except brokers & agents); Public Administration, National Defence & Compulsory Social Security; Extraterritorial organisations and bodies; Business, employer and professional, religious and political memberships organisations and trade unions. Fishery, aquaculture and agriculture businesses also may not qualify.

You are responsible for ensuring that you do not exceed the €200,000 European Community State Aid maximum as a result of taking out a CBILS loan.

The borrower always remains 100% liable for the debt.

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