08/08/20 Corona Virus Business Interruption Loan Scheme – CBILS
Corona Virus Business Interruption Loan Scheme – CBILS
This UK government initiative, whilst the business remains primarily responsible for the repayment, comes with a 80% guarantee being offered by the Government to the lenders and has seen significant activity since it was introduced, with over £50 billion lent so far.
The current, main eligibility criteria are :
- UK-based business that’s been adversely affected by coronavirus
- Turnover of over £200,000
- Minimum 3 years of trading history
- Over 50% of turnover from trading activity (e.g. not from investments)
- Loan is for business purposes
- Loan is primarily for trading in the UK
There are no repayments for the first 12 months. The Government will pay the interest during that time and the upfront fee, helping to reduce the overall cost. If you want to settle the loan early, there’s also no fees for full early repayment. For loans greater than £250,000 personal guarantees may be required.
If you do receive a loan offer, please do let us know and both Andrew or Chris would be happy to talk you through the offer and the impact on your business. Our number is 01908 583800.