A quick guide to CBILs

A CBIL is a Coronavirus Business Interruption Loan. The loan scheme, set up by the British Business Bank, is designed to provide financial support to smaller businesses during the COVID-19 outbreak. With lenders able to provide businesses with loans of up to £5m this can help where cash flow has been negatively impacted by the virus and lockdown.

As a property-focused broker, we can provide advice and introductions for lending secured against a business premises, to trading businesses that have suffered because of COVID-19.

To be eligible for a CBIL a business must:

- Be UK-based in its business activity

- Have an annual turnover of no more than £45 million

- Have a borrowing proposal which the lender would consider viable subject to the facility helping with short and medium term cashflow difficulties

- Self-certify that it has been adversely impacted by the coronavirus (COVID-19)

- Provide suitable security for a secured loan in line with relevant lender’s lending policy

- Generate more than 50% of its turnover from trading activity

- Not have been classed as a “business in difficulty” on 31 December 2019 and must not be subject to any current collections or insolvency proceedings

A few key points:

- You do not have to had applied to your own bank first

- Loans can be between £100k and £5m (loans over £250k may require a personal guarantee)

- Loans requirements will be discussed but can be based on a business’s liquidity requirements to cover up to the next 18 months. This can include business expansion including additional business related property purchases

- No valuation, legal or lender fees apply

- There is an option to pay no capital and interest in the first 12 months

- Loan term of 6 years but can be amortised over a longer period

- Loans can be considered on an interest only basis and be repaid early without penalty

- A CBIL can be used to pay off a previously-taken bounce back loan (BBL)

- Loans must be applied for and drawn by 30th September 2020

If you need help with your business finances during this difficult time and would like to discuss your elgibility for a Coronavirus Business Interruption Loan, please contact us.