Updated Coronavirus Business Interruption Loan Scheme (CBILS) Criteria

​With effect from Monday 6 April 2020 the CBILS has been significantly expanded and changes made to the Scheme’s features and eligibility criteria including a relaxation re personal Guarantees.

If you were a profitable and/or cash generative business prior to Covid-19 the loan is devised to help you survive this difficult period.
 
Previously a CBILS loan was only available where you did not have tangible security to cover the loan, this has been relaxed so a loan can be on the CBILS scheme even if you have other security available.
 
The maximum value of a facility provided under the scheme is £5m.
 
New Eligibility Criteria

• Be a UK based business activity, with turnover of no more than £45m per year.
• Have a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender.
• Self-certify that your business has been adversely impacted by the Coronavirus (COVID-19).

 
Updated Scheme Features

• No personal guarantees from Directors for facilities under £250k
• Personal guarantees for facilities above £250k:
  • 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) i.e. your House, cannot be taken as security to support a personal guarantee or as security for a CBIL backed facility.
• Security:
  • For all facilities, including those over £250,000, CBILS can now support lending to smaller businesses even where a lender considers there to be sufficient security, making more smaller businesses eligible to receive the business interruption payment.

 
How to apply
 
You need to apply to a CBILS participating lender.
 
Ashgates has assisted several clients with successful applications so far and can assist you in this process. If you require advice or assistance, please contact us.
 
What lenders will need from you
 
A formal application is required for CBILS funding. Most lenders are likely to ask for (not limited to):

• Details of the loan / overdraft
  • Amount required
  • What the funds will be used for
  • Repayment term / period
• Supporting documents
  • Details of how covid-19 has affected the business
  • Management and statutory accounts
  • Business plan (including details of business, management & mitigation steps taken)
  • Forecasts (including P&L and cashflow)
  • Details of assets

 
There are 40 CBILS accredited lenders, a list can be found at:

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/accredited-lenders/