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Coronavirus Business Interruption Loan (CBIL)

What is a CBIL

  • It will be provided by the British Business Bank through participating providers. The terms offered will be more attractive for both businesses and lenders.
  • Loan Facility of up to £5million for businesses impacted by Coronavirus.
  • Repayment terms of six years for a term loanand asset finance.
  • The lender will receive a government-backed guarantee but businesses remain 100% liable for the repayment facility.
  • No personal guarantee (PG) required for loans upto £250K and facility above that PG required at lenders discretion but to exclude the main home.
  • The government will also cover the first 12 months of interest payments, so businesses will benefit from lower initial repayments.
  • Need to be UK based business involved in viable business acitivity

Eligibility

  • You need to be a UK based business.
  • Your business turnover should be no more than £41 million per annum.
  • You operate within an eligible industrial sector (a small number of industrial sectors are not eligible for support – see below)
  • Have a sound borrowing proposal, but insufficient security to meet the lender’s requirements. So, if for business reasons you were not able to secure a loan previously, you may find that you are unable to do so now; and
  • Full eligibility criteria will be published shortly.

Eligibility Restrictions
Please note that a limited number of further eligibility restrictions do apply. Almost all business sectors are eligible, however there are a small number of excluded/restricted sectors arising primarily from EU de minimis-State aid rules.

The Process
Finance terms are from three months up to ten years for term loans and asset finance and up to three years for revolving facilities and invoice finance. We are expecting the interest rates to be between 4%-6% above the base rate which now stands at 0.1%.
 
The expectation of a typical loan application to go through will be about 4 weeks for a simple case and 12 weeks for a more complex case and that is why we recommend a multi-track approach i.e. approach one or more participating lenders to discuss your needs.
 
One of those should be your bank and Myers Clark also have access to a panel of lenders via an online platform so we can assist.

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