The British Business Bank has launched the CBILS which can provide facilities of up to £5m for smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.

The CBILS is one of a whole raft of measures recently announced by the Government to support British business while it deals with the economic fallout from the Coronavirus pandemic. The scheme provides the lender with a government backed guarantee, which makes it easier for the lender to provide credit. CBILS supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance.

Key details of the scheme:

  • maximum value of a facility provided under the scheme is £5m
  • the lender is provided with a government-backed partial guarantee (80%) against the outstanding facility balance, subject to an overall cap per lender
  • interest and fees are paid by the Government for the first 12 months
  • finance terms are up to six years for term loans and asset finance facilities and up to three years for overdrafts and invoice finance facilities
  • At the discretion of the lender, the scheme may be used for unsecured lending for facilities of £250,000 and under.
  • The borrower always remains 100% liable for the debt.

Eligibility criteria apply.

Further details in the link provided.