Coronavirus Business Interruption Loan Scheme

Some of you may have heard of something called the ‘Coronavirus Business Interruption Loan Scheme’ (CBILS). It was announced by the new chancellor in the 2020 budget that this will temporarily be replacing the Enterprise Finance Guarantee. Having a clear view and being in control of your cashflow is vital for small and medium sized businesses right now. Access to sources like these, will offer more attractive terms for both businesses and lenders, with the aim of supporting the continued provision of finance to UK businesses during the Covid-19 outbreak.

Our strategic consultancy team are highly skilled at sourcing and negotiating the best rates for your business. Because of the demand in debt and finance facilities requests at the moment, you could potentially face tougher eligibility measures, with guarantors often needed. In this case, you would apply for a loan as normal. If you feel that given the current climate, you don’t have enough security, the government would act as your guarantor. It’s important for you to understand that this is not a government loan for your business, but actually a form of security for the lender.

An accredited lender can use CBILS to help you as a borrower, access funds from £1,000 to £1.2 million. Finance terms can vary from three months up to ten years for term loans and asset finance and up to three years for revolving facilities and invoice finance.  Find the full list of nation wide accredited lenders HERE

In order for your business to be eligible for the Coronavirus Business Interruption Loan, your company must:

  • Be UK based, with 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 insufficient security to meet a lender’s normal requirements
  • Be able to confirm that they have not received de minimis State aid beyond €200,000 equivalent over the current and previous two fiscal years

The loans will be made available from Monday and the banks will treat them the same as any other loan. So, your accounts need to be up to date, you will need to have a business plan in place and you need will need forecasts. All things that we can help with…

Getting you back on track is our highest priority. As well as loans, there are many other types of finance supported by the programme, depending on the provider. If you are looking to raise finances for your business, fit the eligibility criteria and want to ensure you get the best rates, contact our strategic team as soon as possible.

Click the green button for a free consultation. Alternatively contact us on 02085300720 or