The Coronavirus Business Interruption Loan Scheme (CBILS) is now up and running and ready for applications. If you have been wondering how to go about it, then this blog is for you. If you have a small business in the UK that has been affected by the COVID-19 outbreak, this scheme is for you.

Am I Eligible?

If your business is based in the UK and has an annual turnover of no more than £45m, then you are eligible to apply. To be eligible for finance your lender must be able to confirm that if it weren’t for the disruption, you would meet their requirements anyway and that they believe that the finance would enable your business to continue in the short/medium term.

What Finance Is Available?

You will be available to get either a fixed term loan or an asset finance loan of up to 6 years. Or you could get an overdraft with a term of up to 3 years, or an invoice finance term within the same timeframe.

How Much Can I Borrow?

If your business is eligible, then you can get up to £5m in finance. If you want anything up to £250,000, then the lender can give you an unsecured loan if they choose to. If you want anything more, then the lender must establish that you cannot provide guaranteed security prior to being lent the money. If they can lend you the money without the scheme, then they will, but this scheme is a safety net for both parties.

What Interest Will I Pay?

You can expect to pay no upfront costs, and your first year of repayments will be much lower than normal. The Government will pay the fees requested by the lender so that you don’t have to. You will still have to pay back the full amount, but if you can repay it within one year, then it will be interest-free as the Government will pay that for you.

If you need help with your business, and to know how to apply for the loan, get in touch with us to see how we can help you. It’s a scary time for all, but we can get through it together; especially with a great accountant!