About the scheme
The CBILS was launched by the UK Government last year to provide financial support to SMEs that were losing revenue or having their cashflow disrupted as a result of the pandemic.
Since its launch, CBILS has been expanded meaning that more businesses can now access CBILS. One of the key changes to the scheme is that SMEs who would have previously met the requirements for a commercial facility can now access CBILS.
CBILs has also been extended due to the continuing economic impact of the pandemic. Currently, CBILs availability expires on 31st March 2021 but a further extension is likely.
There are currently 117 lenders across the UK involved in the scheme. These include:
- High-street banks
- Challenger banks
- Asset-based lenders
- Specialist local lenders
The first port of call for most businesses would be their existing bank. A refusal from that bank does not preclude a business from approaching other CBILS lenders.
What is available through CBILS?
SMEs can access finance in many forms:
- Term loans
- Invoice finance
- Asset finance
As such, the CBILS support can be tailored to suit the specific needs of the business. It is not just the case of having to take on a term loan.
Key features of CBILS
- Finance of up to £5 million
- Government guarantee to the lender to encourage them to lend
- The borrower remains fully liable for the borrowing
- Government pays the interest and fees on the CBILS facility for the first 12 months – so cost-free to the SME in the first year
- Term loans and asset finance facilities can be repaid over a maximum of six years (but may possibly be extended to 10 years)
- Overdrafts and invoice finance facilities can be repaid over a maximum of three years
- No personal guarantees for facilities under £250,000
- For facilities above £250,000, personal guarantees may be required by the CBILS loan provider but exclude the guarantor’s Principal Private Residence and any recoveries under personal guarantees are capped at a maximum of 20% of the outstanding balance of the CBILS facility (after the proceeds of business assets have been applied)
A business must:
- Be UK-based in its business activity
- Have an annual turnover of no more than £45 million
- Self-certify that it has been adversely impacted by the COVID-19
- Not have been classed as a “business in difficulty”, if applying to borrow £30,000 or more
Businesses from any sector can apply, except:
- Banks, insurers and reinsurers (but not insurance brokers)
- Public-sector bodies
- State-funded primary and secondary schools
What lenders will need from you
- An indication of the business uses of the funds requested
- Management accounts
- Cash flow forecast
- Business plan
- Historic accounts
- A breakdown of your business assets
How Ampios Can Help
Here at Ampios, we have a team of dedicated specialists. We can help you with your business planning. We can also work with you to make the right approach for the most suitable CBILS funding for your business. If you need to get in touch, we’d love to have a chat. Give us a call on T: +44 (0)333 987 4672 or send us a message via our contact form.