The government-backed British Business Bank (BBB) has provided accredited lenders with extra time to grant state-backed loans to adversely affected SMEs and larger firms through the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
Writing to accredited lenders in August, the BBB notified them that the deadline for CBILS applications is set at 30 September, however they have a further two months (until midnight on 30 November) to consider the cases. The deadline for approving CLBILS applications is set for 31 December.
Some lenders have interpreted the announcement as an extension of the loans, according to the National Association of Commercial Finance Brokers (NACFB), which could be a first indication of keeping the schemes open in 2021. Currently, however, SMEs have until 30 September to apply for the CBILS.
How many businesses have benefitted from the CBILS so far?
According to statistics published by the government, more than 1.2 million businesses have received loans and guarantees worth £52.65 billion through BBB-delivered schemes. Drilling down into the data, Bounce Back Loans worth over £3.5bn, CBILS facilities worth nearly £13.7bn and CLBILS finance totalling £3.5bn have been delivered.
When the UK government set up the schemes, they said they would be temporary and last six months. From Prudential Regulation Authority (PRA) regulated banks to asset finance lenders and platform lenders, the BBB continues to review applications from a range of approved enders. You can apply for a CBILS facility through Funding Options.
About the CBILS—key details
The Coronavirus Business Interruption Loan Scheme is part of a wider set of support measures for UK businesses and employees. Eligibility criteria has changed since it was introduced and it has been expanded to enable more businesses to benefit. For instance, insufficient security is no longer a condition to access the scheme.
- CBILS lenders can provide finance to adversely affected businesses (e.g. those experiencing disrupted cashflow or lost or deferred revenues) with a turnover of up to £45 million
- There are over 90 accredited lenders working to approve CBILS-backed facilities
- Lenders can provide up to £5 million in term loans, overdrafts, invoice finance and asset finance
- Borrowers are fully liable for the debt
- The government will make a Business Interruption Payment to cover the first 12 months of interest payments and lender-levied charges
- Personal guarantees may still be required (at the lender's discretion) for finance exceeding £250,000, however recoveries are capped at 20% of the balance after the proceeds of business assets have been applied and a Principle Private Residence (PPR) cannot be taken as security
Some of Funding Options' lending partners are part of the Coronavirus Business Interruption Loan Scheme (CBILS). If your business has been disrupted due to Covid-19, you can find out what support might be available to you through our platform. We will guide you through the application process to help you get the best deal.