Coronavirus Business Interruption Loan Scheme
The Coronavirus Business Interruption Loan Scheme (CBILS) is administered via the British Business Bank through 41 participating partners.
The scheme provides the lender with a government-backed guarantee against 80% of the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’. NB – the borrower always remains 100% liable for the debt.
The Government will also cover the first 6 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 £5million.
When applying, businesses need to have “a sound borrowing proposal ” for an amount for there was “insufficient security [available in the business] to meet the lender’s requirements.”
Finance terms are from three months up to ten years for term loans and asset finance and up to three years for revolving facilities and invoice finance
Full details regarding eligibility and interest rates will appear on this site once CBILS Have published them.
BoL is able to assist you in making an application including preparing the businesses borrowing proposal and producing supporting cashflow forecasts.