The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses affected by coronavirus (COVID-19).
The scheme helps small and medium-sized businesses to access loans and other kinds of finance up to £5 million. The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.
The scheme is open until 31 January 2021.
Who are eligible
Business who are based in the UK, with an annual turnover of up to £45 million are eligible. You need to show that your business would be viable were it not for the pandemic and has been adversely impacted by the coronavirus. If you want to borrow £30,000 or more, you also need to confirm that your business wasn’t classed as a business in difficulty on 31 December 2019.
How long the loan is for
The maximum length of the facility depends on the type of finance you apply for and will be:
- up to 3 years: for overdrafts and invoice finance facilities
- up to 6 years: for loans and asset finance facilities
You’ll need to provide documents that show you can afford to repay the loan. These may include:
- management accounts
- cash flow forecast
- business plan
- historic accounts
- details of assets
The documents required will vary from lender to lender and depend on how much you’re asking for. If you’re asking your existing lender for a small loan, the process may be automated and not require all of the documents.