Coronavirus Business Interruption Loan Scheme: Difference between revisions

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imported>Doug Williamson
(Update for Recovery Loan Scheme. Source: ACT blog https://www.treasurers.org/hub/blog/covid-19-march-2021)
imported>Doug Williamson
(Update for Recovery Loan Scheme. Source: ACT blog https://www.treasurers.org/hub/blog/covid-19-march-2021)
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(CBILS).
(CBILS).


The CBILS was be provided by the UK government owned British Business Bank through participating providers.
The CBILS is 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.
It offers 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 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 covered the first 12 months of interest payments, enabling businesses to benefit from lower initial repayments. The business remains liable for repayments of the capital.  
The UK government also pays the first 12 months of interest payments, enabling businesses to benefit from lower initial repayments. The business remains liable for repayments of the capital.  


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




Revision as of 09:21, 11 March 2021

COVID-19 - business continuity - UK.

(CBILS).

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

It offers 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 pays the first 12 months of interest payments, enabling businesses to benefit from lower initial repayments. The business remains liable for repayments of the capital.

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


CBILS supports 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 must:

  • 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 is superseded by the Recovery Loan Scheme (RLS).


See also

Resources for COVID-19

ACT technical - COVID-19

UK government: support for businesses

UK government: COVID-19 support hub

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