CBILS: information for members
The Coronovirus Business Interruption Loan Scheme (CBILS) was announced in the government's Budget 2020 on Wednesday 11 March, with enhancements to the scheme announced on Tuesday 17 March.
The scheme provides a potential source of loan funding (plus some other financing options) that English UK members may wish to consider. This is likely to be an attractive loan option, however it is important to think about how you will be able to manage the repayments.
English UK's Emergency Business response seminar gave some useful tips on preparing your business in order to increase your chances of obtaining and repaying the loan – as well as suggesting possible alternatives.
To help you navigate the scheme we have broken down the key points:
CBILS: key points about the loan scheme
- Privately-owned English UK member centres are fully eligible for the loan (or other financial options) provided they have a turnover of less than £41 million per year
- It will be available from the week commencing 23 March 2020. There are over 40 lenders that you can approach in order to apply for the loan
- It is offered through the British Business Bank via its partner lenders
- We don't have further details yet of the repayment terms but they are described as being 'attractive'
- The government will cover the first six months of interest repayments so you don't need to pay those
- The lender will have a government-backed guarantee, making it much more likely that the loan will be granted. However, the borrower is always 100% liable for the debt
- Loans can be for up to £5 million, with repayment terms from three months up to ten years
- View full details of the Coronavirus Business Interruption Loan Scheme
We will share more details and how to apply for the scheme once we have them. If you have any questions or concerns in the meantime, please do get in touch.
English UK member centres also have access the free English UK business support helpline: an independent helpline offering expert advice on HR, health and safety, payroll, PAYE, tax and other commercial legal issues.
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