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Help with the Coronavirus Business Interruption Scheme

Posted by Deborah Kirtley on 27th March 2020

As each day seems to become more and more testing for businesses, business owners and business leaders, Endeavour Partnership is here to help you through these difficult times.

The Coronavirus Business Interruption Loan Scheme (CBILS) is now open for applications and is designed to support a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities and can provide facilities of up to £5m for smaller businesses across the UK who are experiencing lost or deferred revenues and subsequent disruption to cashflow.

The CBILS website is the best source of up to date information – but in the first instance speak to your own lender or an accredited CBILS lender if you cannot find the help you need.

  • The maximum value of a facility provided under the scheme will be £5m, available on repayment terms of up to six years.
  • The scheme provides the lender with a government-backed, partial guarantee (80%) against the outstanding facility balance, subject to an overall cap per lender.
  • No fee for smaller businesses. Lenders will pay a fee to access the scheme.
  • The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.
  • Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
  • At the discretion of the lender, the scheme may be used for unsecured lending for facilities of £250,000 and under. For facilities above £250,000, the lender must establish a lack or absence of security prior to businesses using CBILS. If the lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.
  • The borrower always remains 100% liable for the debt.
Please contact our banking and finance expert, Deborah Kirtley for further help and advice.

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