Coronavirus Business Interruption Loan Scheme (CBILS)

The temporary Coronavirus Business Interruption Loan Scheme has been set up to support SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years.

The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.

The government will provide lenders with a guarantee of 80% on loans of up to £5m in value (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The scheme will be delivered through commercial lenders, backed by the government-owned British Business Bank for UK based businesses with a turnover of under £45m.

Am I eligible?

You are eligible for the scheme if your business:

  • is UK based, with turnover of no more than £45 million per year
  • would be viable were it not for the pandemic and has been adversely impacted by the coronavirus
  • meets the other British Business Bank eligibility criteria

If you want to borrow £30,000 or more you also need to confirm that your business wasn't classed as a business in difficulty on 31 December 2019.

For help for your +£45 million turnover business, see here.


How to access the scheme

The scheme is now open for applications. All major banks are offering this scheme.

To apply, you should talk to your bank or one of the +50 accredited finance providers (not the British Business Bank) as soon as possible, to discuss your requirements.

Lenders may require documentation such as:

  • management accounts
  • cash flow forecasts
  • business plans
  • historic accounts
  • details of assets

The Price Pearson team can help you draw up any of the above and can give guidance on how to deal with the lending process and applications

The full rules of the scheme and the list of accredited lenders are available on the British Business Bank website.


Bounce Back Loan Scheme (BBLS)

This scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover – up to a maximum loan of £50,000. 

The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year. 

Am I eligible?

You are eligible for the scheme if your business:

  • is UK based
  • was established before 1 March 2020
  • has been adversely impacted by the coronavirus

If you have already claimed funding under the Coronavirus Business Interruption Loan Scheme, Coronavirus Large Business Interruption Loan Scheme (CLBILS) or COVID-19 Corporate Financing Facility then you cannot apply for the Bounce Back Loan Scheme, but can to transfer your current loan to the scheme before 4th November 2020. 

Please note, if your business claims any form of State Aid including R&D Claims, then extra care must be taken with regard to de minimis State Aid restrictions. 


How to access the scheme

There are 10+ lenders participating in the scheme including many of the main retail banks. You should approach a suitable lender yourself via the lender’s website. 

The lender will ask you to fill in a short online application form and self-declare that you are eligible. 

The lender will decide whether to offer you a loan or another type of finance and you’ll be responsible for repaying 100% of the amount borrowed. 

For a current list of lenders offering the Bounce Back Loan Scheme see here.

Price Pearson have successfully assisted many clients through successful Bounce Back Loan Scheme Applications, with funds arriving into the bank within 24 hours. If you need help with yours please don’t hesitate to get in touch.


Existing Loan Commitments

If you have existing loans or credit card commitments with monthly repayments, you may want to ask for a repayment holiday to help with cash flow. Different lenders are offering different levels of support here, on a case by case basis.  


Again, if you wish to chat things through let us know. 


Last updated: 18 Jun 2020 10:21 AM