What is the Coronavirus Business Interruption Loan Scheme?
The British Business Bank’s Coronavirus Business Interruption Loan Scheme ("CBILS") facilitates lending to smaller businesses. It is only available through accredited CBILS lenders and is designed to help SMEs manage cash flow during the COVID-19 pandemic.
Under the scheme, we can offer government-backed loans between £1,000 and £5m to businesses using our asset finance facilities.
The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied charges.
How does CBILS work?
If an otherwise viable business has been adversely impacted by the COVID-19 pandemic and the provision of finance will enable them to trade out of any short-to-medium term difficulties, we may be able to provide them with additional lending that they would otherwise not have access to using our suite of asset finance products.
The facility is underwritten, approved and managed by Close Brothers, and repayments are paid directly to us, just like any other business loan. We offer CBILS facilities of up to £5m over a maximum term of six years.
The guarantee is to Close Brothers ("the lender"), and not the small business. As with any other commercial transaction, the borrower is responsible for repayment of the full value of any facility supported by CBILS.
The Coronavirus Business Interruption Loan Scheme (CBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy (BEIS).
How can businesses access CBILS through Close Brothers?
If they are an existing Close Brothers Business Finance customer or are a new customer with a need for a CBILS-backed asset finance facility, please contact your Broker Development Manager.
Please note that if we are able to offer finance on normal commercial terms without the need to make use of the scheme, we will recommend this.
Full details on CBILS eligibility criteria can be found on the British Business Bank website at: www.british-business-bank.co.uk/CBILS
Eligibility
To be eligible for support via a CBILS facility, a business must:
1. Be a viable UK based business, with a turnover of no more than £45m per annum
2. Generate more than 50% of its turnover from trading activity
3. Require a CBILS-backed facility to support primarily trading in the UK
4. Borrow up to a maximum of £5m (finance terms are up to six years for term loans and asset finance)
Contact us today
If you have any questions about CBILS, please give a member of the team a call
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