Coronavirus Business Interruption Loan Scheme: conditions and rates

4 October 2020

CBILS is a new temporary measure only. After the end of the epidemic or stabilization of the situation, this approach will be terminated.


The recent UK budget announced attractive terms for both businesses and lenders, with the aim of supporting the continued provision of finance to UK businesses during these challenging times.


Conditions for lenders


The UK government provided accredited lenders (see list below) with a guarantee of 80% on each loan they make to give these lenders confidence in continuing to provide finance to small business. Such guarantees are vital in changing the credit decision given by a lender.

General conditions

1. UK registered business. 2. Application must be for business purposes. 3. The loan limits under CBILS are a minimum of £1,000 and a maximum of £5,000,000. 4. Turnover less than £45,000,000 per annum. 5. The business does not operate in one of the following ineligible sectors: banks and building societies; insurers and reinsurers (but not insurance brokers); public-sector organisations, including state-funded primary and secondary schools; employer, professional, religious or political membership organisations; trade unions. The CBILS facility will be firstly used to support trading in the UK 6. More than 50% of turnover must be generated from trading activity.

The interest rate

CBILS business finance products available

Financial terms

Application Process

Security for lending

The list of lenders


The following lenders are accredited:

Accredited lenders

Range of business finance products

Conditions

ABN AMRO COMMERCIAL FINANCE

Terms Loan and Invoice Finance

General conditions.

+ An annual turnover between £2.5m and £45m

+ If you have assets with partial lending value, ABN would consider a combination of secured and unsecured lending options.

+ Your CBILS-backed facility will be used to support primarily trading in the UK

ARKLE FINANCE

Asset Finance

​General conditions.

ART BUSINESS LOANS

Term Loan

General conditions.

+ The business must be based in the West Midlands

+ After interest free period of 12 months:

12% over Bank of England Base Rate

+ Loans between £10,000- £150,000

+ Personal guarantees will not be required.

ASKIF

Term Loan

General conditions.

+ Loans from £10,000 to £60,000

+ Only for businesses that have been trading for a minimum of 12 months.

+ Finance terms are from 1 up to 4 years

BANK OF IRELAND (NORTHERN IRELAND)

Term Loan and Revolving Credit

General conditions.

BANK OF SCOTLAND

Term Loan

General conditions.

+ Loans from £25,000

+ Business has not accumulated losses greater than half of subscribed share capital as at 31 December 2019

+ Business has not previously received rescue or restructuring aid that is yet to be reimbursed or is still under a restructuring plan

BARCLAYS

Term Loan

General conditions.

+ Loan between £25,001 and £5,000,000

+ Finance terms are from 1 up to 6 years

BCRS BUSINESS LOANS

Term Loan

General conditions.

+ Loans from £10,000 to £150,000

+ West Midlands based businesses

BUSINESS ENTERPRISE FUND (WEST & NORTH YORKSHIRE AND THE NORTH EAST)

Term Loan

General conditions.

+ Loans up to £250,000

CHAMBER ACORN FUND (HUMBER) LTD

Term Loan

CHAMBER ACORN FUND doesn't have sufficient capital in order to participate in the scheme

CLYDESDALE AND YORKSHIRE BANKS

Term Loan

General conditions.

+.Loan between £25,001 and £5,000,000

COMPASS BUSINESS FINANCE

Term Loan and Asset Finance

General conditions.

COVENTRY & WARWICKSHIRE REINVESTMENT TRUST

Term Loan

General conditions.

DANSKE BANK (NORTHERN IRELAND)

Term Loan

General conditions.

+ Loan between £25,001 and £5,000,000

+ Finance terms are from 1 up to 6 years.

The maximum loan value:

2 x Annual wage bill as evidenced by 2019 accounts.

25% of 2019 turnover as evidenced by 2019 accounts.

Estimation of Working Capital/Investment costs required for the forthcoming 18 months.

DSL BUSINESS FINANCE (SCOTLAND)

Term Loan

General conditions.

+ Loan between £1,000 and £50,000

+ Finance terms are from 1 up to 5 years.

+ Supports businesses located in Scotland

ENTERPRISE ANSWERS (CUMBRIA)

Term Loan

General conditions.

+ Business based in Cumbria, North Lancashire or The Yorkshire Dales.

FINANCE FOR ENTERPRISE (DONBAC)

Term Loan

General conditions.

+ Business is based in either: Sheffield City Region, The Humber region, Lincolnshire, North Midlands (i.e. Derbyshire & Nottinghamshire).

+ CBILS-backed facility will be used to support primarily trading in the UK.

+ Finance terms are from 1 up to 5 years.

FIRST ENTERPRISE

Term Loan

General conditions.

+ Loans of up to £150,000

GC BUSINESS FINANCE

Term Loan

General conditions.

+ Business is based in Greater Manchester or in the North West

+ Loans between £25,000 and £100,000 for North West Businesses.

+ Loans between £5,000 and £250,000 for Greater Manchester Businesses

+. Finance terms are up to 5 years

GENESIS ASSET FINANCE

Term Loan

General conditions.

+ Loans between £5,000 and £100,000.

+ Facilities continue to only be available to Limited companies in England and Wales

HAYDOCK FINANCE

Asset Finance

General conditions.

HITACHI CAPITAL BUSINESS FINANCE

Term loan and Asset Finance

General conditions.

+ APR between 6.2% and 8.8%.

+ Loans from £5,000 to £500,000.

+ Finance terms between 2-5 years

+ Available to Sole Traders, Private Companies (Ltd), Limited Liability Partnerships (LLP), Public Companies (PLC). Trading 3+ years

HSBC

Term Loan

General conditions.

+ After interest free period of 12 months:

3.49% over Bank of England Base Rate for loans up to and including 3 years.

3.99% over Bank of England Base Rate for loans over 3 years.

+ For incorporated entities: available for sums of £10,000. For sole traders and partnerships: available for sums of £25,001.

+The maximum assistance is €800,000, with restrictions in certain sectors

LET’S DO BUSINESS GROUP

Term Loan

General conditions.

+ Loans from from £3,000 to £50,000.

+ Finance terms are from 3 months up to 7 years.

LLOYDS BANK

Term Loan

General conditions.

+ Loans between £25,000 and £5,000,000.

MERSEYSIDE SPECIAL INVESTMENT FUND

Term Loan

General conditions.

+Need to be existing client.

METRO BANK

Term Loan

General conditions.

NATWEST

Term Loan

General conditions.

+Loans from £5k to £5 million.

NEWABLE (FORMERLY GLE)

Term Loan

​General conditions.

ROBERT OWEN COMMUNITY BANKING

Term Loan

General conditions.

+ Loans between £1,000 and £25,000

+ 9-15% Fixed Interest Rate

+ Finance terms are from 1 up to 5 years

SANTANDER

Term Loan

General conditions.

SKIPTON BUSINESS FINANCE

Invoice Finance and Term Loan

General conditions.

SOUTH WEST INVESTMENT GROUP

Term Loan

General conditions.

+ Only for Bristol, Cornwall and the Isles of Scilly, Devon, Dorset, Gloucestershire, Somerset and Wiltshire.

+ APR between 12%-14,9%.

+ Loans between £10,000 - £60,000.

+ Finance terms are up to 3 years

THE ROYAL BANK OF SCOTLAND

Term Loan

General conditions.

+ depends on kind of loans: Small Business Loan, Fixed Rate Loan, Variable Rate Loan qualify for CBILS.

TSB

Term Loan

General conditions

UKSE

Term Loan

General conditions.

+ Loans up to £100,000

ULSTER BANK (NORTHERN RELAND)

Term Loan

General conditions.

+ Interest rate 7,1%

+Loans between £5k and £5 million

These financial institutions are in the process of scheme’s details, conditions and rates. Therefore, the information regarding conditions may be changed and updated.


For further information on any of the points above contact

Mikita Makayou at mikita@lexefiscal.com, or

Dr. Frank at clifford.frank@lexefiscal.com.


3 views0 comments

Recent Posts

See All

Thanks for submitting!