What is it?
The Coronavirus Business Interruption Loan Scheme (“CBILS”) is an agreed arrangement with certain banks to provide access to loans, overdrafts, invoice finance and asset finance of up to £5 million for up to 6 years.
The Government will cover the interest for the first 12 months together with lender levied fees so that there are no upfront costs and lower initial repayments.
The Government will also guarantee 80% of each loan.
Who does it apply to?
Small and medium sized (“SME”) businesses.
An SME is a business that satisfies the following conditions:
- Employs less than 250 employees and either:
- Has an annual turnover not exceeding €50 million (approximately £40 million); or
- Its Balance Sheet total does not exceed €43 million (approximately £34 million). Quality and
- Other conditions apply.
CBILS related conditions:
The business must:
- Be UK based on its business activity
- Have an annual turnover no more than £45 million
- Prepare a borrowing proposal. The conditions of the proposal was changed on Friday 3 April 2020.
- Self certify that it has been adversely impacted by the coronavirus.
What the lenders will need from you
- The amount that you will need.
- Explain what the money is for.
- The period over which you will be able to make repayments.
Supporting documents
You will need the following documents:
- Management Accounts
- Cash Flow Forecasts
- Business Plan
- Historic Accounts
- Details of Assets
The precise details may vary depending on lenders and your business. If you do not have everything listed above, you may still qualify for CBILS. We can help with your application.
FINALLY
If you need help in applying for CBILS then please contact me on 07710 989 926 or e-mail me on [email protected]
