ABOUT THE CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME

The Coronavirus Business Interruption Loan Scheme (CBILS) is now closed to new applications.

If you have a query about CBILS, or wish to discuss an outstanding application, please contact us in the usual way.

The Coronavirus Business Interruption Loan Scheme (CBILS) is a government initiative to help small businesses affected by coronavirus. This includes charities, housing associations and social organisations. The scheme enables lenders to provide facilities of up to £5m to organisations impacted by coronavirus.

Through CBILS, CAF Bank is able to provide loans of up to £3m to charitable organisations across the UK who are experiencing financial difficulties due to lost or deferred revenues.

To make the loans more affordable, there are no repayments for the first 12 months. You won’t be charged interest during that time or need to pay a fee to take out the loan, as the Government will cover this for you. If you want to settle the loan early, there are also no fees for full early repayment.

For term loans and overdrafts, the minimum amount a lender can offer under CBILS is £50,001. 

SCHEME FEATURES

  • Loans of between £50,001 to £3m
  • Loan repayment terms up to 6 years 
  • No upfront or early settlement fee
  • Interest and fees paid by Government for 12 months
  • The borrower's personal residential property cannot be taken as security for a CBILS-backed loan
  • The borrower always remains 100% liable for the debt

CAF Bank's maximum loan limit of £3m is lower than that of the wider CBILS scheme, because accredited lenders each provide different types of loan facilities covered by the scheme.

The British Business Bank FAQs page is regularly reviewed and updated, and has a wide range of in-depth information about the scheme.

ELIGIBILITY CRITERIA

Smaller businesses from all sectors can apply for the full amount of the facility. To be eligible for a facility under CBILS, a smaller business must:

  • Be UK based in its business activity, with turnover of no more than £45m per year
  • Have a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender
  • Self-certify that it has been adversely impacted by the coronavirus

Please note that the following are not eligible under CBILS:

  • Banks, Insurers and Reinsurers (but not insurance brokers)
  • Public sector bodies
  • State funded primary and secondary schools

Recovery Loan Scheme

A new debt finance programme, the Recovery Loan Scheme (RLS), was announced by the Government in the Budget on 3 March 2021. The new Scheme, which will open on 6 April 2021, aims to support businesses affected by Covid-19 as they recover and grow following the pandemic. RLS supports a maximum facility size of up to £10m with minimum facility sizes starting at £1,000 for Invoice and Asset Finance and £25,001 for Term Loans and Overdrafts.

Further information can be found on the British Business Bank website.

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Managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit british-business-bank.co.uk


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If you have a query about CBILS, or wish to discuss an outstanding application, please contact us in the usual way.

 

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