What is the Coronavirus Business Interruption Loan Scheme (CBILS)?
This is a Government backed scheme to help businesses affected by Covid-19. A list of accredited lenders can be found on the British Bank website, however, the lending criteria may vary from lender to lender.
Under the CBILS scheme, personal guarantees of any form will not be taken for facilities below £250,000, however, over it will be left to the bank or independent lender’s discretion.
You can have more than one CBILS application, however, you cannot have a CBILS and a Bounce Bank Loan and therefore you will need to carefully consider which facility will be the best for your business.
CBILS lending can be in the form of a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities. Please note that for term loans and overdrafts, the minimum amount a lender can offer under CBILS is £50,001.
How long will CBILS be available?
The deadline for applying for CBILS is 30th September 2020. Lenders will have two more months to consider cases. That pushes the final approvals date to November 30. The deadline for approving larger CBILS has been set for December 31.
CBILS Check List
The British Business Bank has created a checklist to help you understand if you may be eligible to apply for a CBILS-backed facility.
What should I do?
• Choose a Lender, reviewing the options via the accredited lenders of the scheme
• Check your eligibility
• Check your financials are up-to-date to include: Cash flow forecast, latest management information, bank statements
• Draw a document together giving an overview of your business: what you do, how Covid-19 has affected you, if you have Furloughed Staff, contract put on hold
• When writing your Business Plan, consider and document how the CBILS loan will help you trade out of your short- and medium-term difficulties. Ensure the figure asked for is realistic.
The amount of information required can be overwhelming, however, please do not hesitate to contact us if you need support.
CBILS Application Toolkit
To assist you with making an application, we have compiled the following toolkit:
• CBILS Interactive Toolkit (with checklist)
• CBILS Completed Information Application Sample
• CBILS Interactive Information Application Template
• Cash Flow Forecast Template