Coronavirus Business Interruption Loan Scheme: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Create page. Source: British Business Bank webpage https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/)
 
imported>Doug Williamson
(Update.)
 
(16 intermediate revisions by the same user not shown)
Line 1: Line 1:
''Business continuity - pandemic.''
''COVID-19 - business continuity - UK.''


(CBILS).
(CBILS).


The CBILS will be provided by the British Business Bank through participating providers, and will offer more attractive terms for both businesses applying for new facilities and lenders, with the aim of supporting the continued provision of finance to UK businesses during the Covid-19 outbreak.
The CBILS was provided by the UK government owned British Business Bank through participating providers.


The scheme provides the lender with a UK government-backed guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’.  
It offered more attractive terms for both businesses applying for new facilities and lenders, with the aim of supporting the continued provision of finance to UK businesses during the Covid-19 outbreak.


The Government will also cover the first 12 months of interest payments, so businesses will benefit from lower initial repayments. The business remains liable for repayments of the capital. The maximum value of a facility provided under the scheme will be £5 million.
The CBILS provided the lender with a UK government-backed guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’.  


The UK government also paid the first 12 months of interest payments, enabling businesses to benefit from lower initial repayments. The business remained liable for repayments of the capital.


CBILS SUPPORTS A WIDE RANGE OF BUSINESS FINANCE PRODUCTS, INCLUDING:
The maximum value of a facility provided under the scheme was £5 million.
 
 
CBILS supported a wide range of business finance products, including:


*Term facilities
*Term facilities
Line 18: Line 22:




TO BE ELIGIBLE FOR SUPPORT VIA CBILS, THE SMALL BUSINESS MUST:
To be eligible for support via CBILS, the small business had to:


*Be UK based, with turnover of no more than £45 million per annum.
*Be UK based, with annual turnover of no more than £45 million.
*Operate within an eligible industrial sector.
*Operate within an eligible industrial sector.
*Be unable to meet a lender’s normal lending requirements for a fully commercial loan or other facility, but would be considered viable in the longer-term.
*Be unable to meet a lender’s normal lending requirements for a fully commercial loan or other facility, but would be considered viable in the longer-term.
For new borrowings from April 2021 onward, CBILS was superseded by the Recovery Loan Scheme (RLS).




==See also==
==See also==
* [[Bounce Back Loan Scheme]]
*[[British Business Bank]]
*[[British Business Bank]]
*[[Business continuity plan]]
*[[Business continuity plan]]
*[[Contingency plan]]
*[[Contingency plan]]
*[[COPD]]
*[[Coronavirus]]
*[[Coronavirus]]
*[[COVID-19]]
*[[Coronavirus Job Retention Scheme]]
*[[Coronavirus Large Business Interruption Loan Scheme]]
*[[COVID-19 Corporate Financing Facility]]
*[[Disaster recovery planning]]
*[[Disaster recovery planning]]
*[[Financial stability]]
*[[Financial stability]]
*[[Liquidity management]]
*[[Liquidity management]]
*[[WFH]]
* [[Recovery Loan Scheme]]  (RLS)
*[[Stranded middle]]
 
 
==Resources for COVID-19==
[https://www.treasurers.org/hub/technical/covid19 ACT technical - COVID-19]
 
[https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses UK government: support for businesses]


[[Category:The_business_context]]
[[Category:The_business_context]]

Latest revision as of 21:25, 30 December 2022

COVID-19 - business continuity - UK.

(CBILS).

The CBILS was provided by the UK government owned British Business Bank through participating providers.

It offered more attractive terms for both businesses applying for new facilities and lenders, with the aim of supporting the continued provision of finance to UK businesses during the Covid-19 outbreak.

The CBILS provided the lender with a UK government-backed guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’.

The UK government also paid the first 12 months of interest payments, enabling businesses to benefit from lower initial repayments. The business remained liable for repayments of the capital.

The maximum value of a facility provided under the scheme was £5 million.


CBILS supported a wide range of business finance products, including:

  • Term facilities
  • Overdrafts
  • Invoice finance facilities
  • Asset finance facilities


To be eligible for support via CBILS, the small business had to:

  • Be UK based, with annual turnover of no more than £45 million.
  • Operate within an eligible industrial sector.
  • Be unable to meet a lender’s normal lending requirements for a fully commercial loan or other facility, but would be considered viable in the longer-term.


For new borrowings from April 2021 onward, CBILS was superseded by the Recovery Loan Scheme (RLS).


See also


Resources for COVID-19

ACT technical - COVID-19

UK government: support for businesses

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Coronavirus_Business_Interruption_Loan_Scheme&oldid=11624’