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

The Government will make a business interruption payment to cover the first 12 months of interest payments and any lender-levied charges.

CBILS business finance products available

The preliminary range of business finance products are: a) Term facilities; b) Revolving Credit (Overdrafts); c) Asset finance facilities; d) Invoice finance facilities.

Financial terms

Financial terms are: a) up to 6 years for term loans and asset finance facilities; b) up to 3 years for overdrafts and invoice finance facilities.

Application Process

Business should apply to one or more of the accredited lenders with their borrowing proposal. If the small business has a sound borrowing proposal but insufficient security, the accredited lender considers the business for support via CBILS.

Security for lending

1. The accredited lender can choose to use CBILS for unsecured lending for facilities below £250,000. 2. The Big Four banks (Barclays; HSBC; Lloyds Banking Group; the Royal Bank of Scotland Group) have agreed that they will not take personal guarantees under CBILS as security for lending below £250,000. 3. Primary residential property cannot be taken as security in the framework of CBILS.

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.