The British Business Bank launches new Coronavirus Business Interruption Loan Scheme (CBILS)

The British Business Bank has launched details of the new Coronavirus Business Interruption Loan Scheme (CBILS) which is now open for applications for smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow. Full details of the CBILS scheme can be found here but the main criteria are:

• Loan facilities of up to £5m
• 80% of the lenders risk is covered
• Repayment terms up to 6 years for term loans and asset finance, but overdraft and invoice facilities will be up to 3 years.
• No upfront fees and interest is covered by Government for up to 12 months
• Companies remain 100% liable for the debt repayments. Total unsecured lending of up to £250,000.
• Application for loans from the scheme is administered by over 40 approved lenders including main banks, challenger banks and asset finance etc. Businesses need to apply directly to the lenders and present their case for the finance needed.