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COVID-19
Business Interruption Loans or CIBLS
Update as a September 2020
Borrowers taking out loans through CBILS may also be able to extend the repayment period up to 10 years, provided their lender agrees to it.
Applications for all of the government’s coronavirus business loan schemes will be extended to the end of the year.
Your businesses’ credit rating will not be affected by these changes.
Who is eligible: All businesses
Who is not eligible: Self employed individuals and sole traders should contact their bank directly to discuss overdraft extensions or personal loans that should be provided at competitive rates due to low interest environment and liquidity of banks currently. Please also see the Self Employment Income Support Scheme for self employed or the Coronavirus Job Retention Scheme for limited company directors with or without staff.
How to access:
Direct with approved lenders, see list of lenders here
Not every accredited lender can provide every type of finance listed, so you should use the filter on the right hand side of the accredited lender page to select which type of finance best suits your needs.
When to access: From Monday 23rd March 2020
Eligibility:
Be UK based, with a turnover of no more than £41 million per annum
Operate within an eligible industrial sector (a small number of industrial sectors are not eligible for support)
Have a sound borrowing proposal but have inadequate security to meet a lender’s normal requirements
Be able to confirm that they have not received other public support of de minimise state aid beyond €200,000 equivalent over the previous three years
Updates since lAUNCH as at 10th April:
Now that the Scheme is up and running, the government has pushed for banks to be more lenient in their eligibility criteria for businesses to receive funding:
CBILS will match the commercial rate of interest to reflect the current low Bank of England interest rates
CBILS are no longer a last resort for banks to offer finance to businesses struggling. You can now access CILBS directly via the approved lenders list noted above, versus being offered a loan under normal terms first.
Lenders are now banned from demanding personal guarantees for loans under £250,000
The government is amending the operation of the loan to speed up approvals for the scheme
How do I apply?
Apply via the lender’s website in the first instance. Telephone lines are likely to be busy and branches may currently be shut to enable social distancing.
Consider the urgency of your need – if you are looking for regular longer-term finance rather than ‘emergency’ finance, it might be better to speak to a broker versus your bank who will be inundated with emergency enquiries
government and the British Business Bank have now provided a step-by-step process on how to apply for a government business interruption loan, found here
What information do I need to apply?
The government is offering CILBS via the British Business Bank, who have now provided a step-by-step process of how to apply and what information you will be asked for as part of the application process, see here.
Please have a look at the following pages to find exactly what you are looking for: