Coronavirus Business Interruption Loan Scheme
COVID-19 - business continuity - UK.
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
- 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For new borrowings from April 2021 onward, CBILS is superseded by the Recovery Loan Scheme (RLS).
- Bounce Back Loan Scheme
- British Business Bank
- Business continuity plan
- Contingency plan
- Coronavirus Job Retention Scheme
- Coronavirus Large Business Interruption Loan Scheme
- COVID-19 Corporate Financing Facility
- Disaster recovery planning
- Financial stability
- Liquidity management
- Recovery Loan Scheme
- Stranded middle