Coronavirus Business Interruption Loan Scheme (CBILS)
In December 2020, the Chancellor, Rishi Sunak extended the deadline for new applications to the CBILS to 31 March 2021, extended from 31 January 2021.
The CBILS provides financial support to smaller businesses (SMEs) across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak. It is part of a wider package of government support for UK businesses and employees.
There are over 100 lenders currently working to provide finance, including:
A lender can provide up to £5 million in the form of:
CBILS gives the lender a government-backed guarantee for the loan repayments to encourage more lending.
Bounce Back Loan Scheme (BBLS)
The BBLS was introduced to enable smaller businesses to access finance more quickly during the coronavirus outbreak.
It helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.
The government guarantees 100% of the loan and there are no fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year and the term of the loan can be up to 10 years.
To apply for a loan, the business must be:
The BBLS is also open to applications until 31 March 2021.
If you already have a BBL but borrowed less than you were entitled to, you can top up your existing loan to your maximum amount. You must request the top-up by 31 March 2021.
We are here to help
It is good news that the deadline for applications to both schemes is now 31 March 2021.
We can assist businesses to access government backed products. If you need our help with a funding application, or any other advice get in touch.