Coronavirus Business Interruption Loan Scheme (CBILS)

The Coronavirus Business Interruption Loan Scheme (CBILS) has been extended until 31st March 2021 and aims to provide financial support to smaller businesses (SMEs) across the UK during the coronavirus pandemic.

The loan, which seeks to aid UK businesses that are losing revenue or have a disrupted cashflow, can provide financial support of up to £5 million in the form of term loans, overdrafts, invoice finance and asset finance.

There are currently over 100 accredited lenders working with British Business Bank and these include:

• high-street banks
• challenger banks
• asset-based lenders
• smaller specialist local lenders

Businesses that apply for a loan of below £250,000 under the scheme will not be required to give a personal guarantee. For facilities above £250,000, personal guarantees may still be required, at a lender’s discretion, but:

• recoveries under these are capped at a maximum of 20% of the outstanding balance of the CBILS facility after the proceeds of business assets have been applied;
• a Principal Private Residence (PPR) cannot be taken as security to support a personal guarantee or as security for a CBILS-backed facility

The borrower remains 100% liable for the debt.

Remember, if you need help understanding the latest government guidance, finding out what support is available, or just want someone to speak to about your business, we can help. Call us on 01273 335878 or email us at info@businesseastsussex.org.uk.