Coronavirus Business Interruption Loan Scheme – Temporarily replacing the Enterprise Finance Guarantee Scheme

IMPORTANT UPDATE: At Budget 2020, the Chancellor announced that the Coronavirus Business Interruption Loan Scheme will temporarily replace the Enterprise Finance Guarantee, becoming available over the coming weeks.

This scheme is being  delivered by the British Business Bank through providers previously accredited to deliver facilities under the Enterprise Finance Guarantee, including its Asset Finance, Invoice Finance, Term Loans and Overdraft variants.

It will operate in a similar way to EFG but will offer more attractive terms for both businesses and lenders, with the aim of supporting the continued provision of finance to UK businesses during the Covid-19 outbreak.

Disclaimer: We are in the process of defining and agreeing the scheme’s details, specifications and eligibility and therefore information is subject to change. We will be updating our webpages to reflect any potential changes to CBILS as and when they are published.

webpages will be updated over the coming days to provide more information.

CBILS encourages lending to viable UK businesses that would be turned down for a loan or other form of debt finance, due to inadequate security.

It does this by providing accredited lenders with a Government-backed guarantee for 80% of the facility value (subject to an annual claim limit at portfolio level).

If you are a lender and are seeking accreditation, please review the criteria set out within the expression of interest:

Download our Expression of Interest Form

Upon completion, please submit the completed document to BBB EFG Accreditation:

efgaccreditation@british-business-bank.co.uk

CBILS SUPPORTS A WIDE RANGE OF BUSINESS FINANCE PRODUCTS, INCLUDING:

  • Overdrafts
  • Invoice finance facilities
  • Asset finance facilities
  • Term Loans

To be eligible for support via CBILS, the small business must:

  • Be UK based, with turnover of no more than £41 million per annum
  • Operate within an eligible industrial sector (a small number of industrial sectors are not eligible for support)
  • Have a sound borrowing proposal but have inadequate security to meet a lender’s normal requirements
  • Be able to confirm that they have not received other public support of de minimis state aid beyond €200,000 equivalent over the previous three years

CBILS guarantees facilities to fund the future growth or expansion of a business, from £1,000 to £1.2 million. Finance terms are from three months up to 10 years for term loans and asset finance and up to three years for revolving facilities and invoice finance.

Note: A limited number of further eligibility restrictions to apply. Full details can be found here.

HOW DOES A SMALL BUSINESS APPLY FOR A CBILS-SUPPORTED BORROWING FACILITY?

It’s simple to apply and should take no longer than a standard application.

Any small business interested in CBILS should, in the first instance, approach one of the 40+ accredited lenders with their borrowing proposal.

If the CBILS lender can offer finance on normal commercial terms without the need to make use of CBILS, they will do so. Where the small business has a sound borrowing proposal but no, or inadequate security, the lender will consider the small business for support via CBILS.

Decision-making on whether a small business is eligible for CBILS is fully delegated to the 40+ accredited lenders. These lenders range from high-street banks, to challenger banks, to asset based lenders, through to smaller specialist local lenders.

Please note:

  • As with any other commercial transaction, the borrower is always responsible for repayment of the full value of any facility supported by CBILS
  • The CBILS guarantee is to the lender and not the small business

Not withstanding the temporary CBILS, we continue to seek new lenders to become accredited for the EFG scheme upon its resumption. 

Download our Request for Proposals

Download our Enterprise Finance Guarantee Expression of Interest Form

Email the EFG accreditation team (note: Only for lenders wishing to enquire about EFG accreditation). Businesses should contact one of the accredited lenders for further information.

CBILS for SMEs and Advisors

The information on these pages is tailored for lenders who wish to find out more about becoming an EFG accredited lender in the future. 

If you are an advisor or business, please see our CBILS for Businesses & Advisors page for full details about the scheme, including how to apply for a CBILS facility.

PLEASE READ THE IMPORTANT UPDATE REGARDING CHANGES TO THE SCHEME