Coronavirus Business Interruption Loan Scheme (CBILS) Explained
Delivered by: Anita Roberts – Business Relationship Director, Santander Corporate and Commercial / Wesley Lovett – Head of Business Development, BCRS
Thursday April 30th 2020
2pm until 3pm
You are invited to join this webinar hosted by BCRS and Santander
This is your chance to find out more and ask any questions you have regarding the Coronavirus Business Interruption Loan Scheme (CBILS)
What is CBILS?
CBILS was originally launched by the Government on 23rd March 2020 to temporarily replace the Enterprise Finance Guarantee (EFG). The Scheme is initially for 6 months from March 2020 and may be extended.
Delivered through 40+ British Business Bank accredited lenders and partners and is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak.
• The scheme is available to all qualifying UK companies with an annual turnover of up to £45 million.
• The maximum facility term loan facility is £5 million for terms of up to 6 years. The borrower will pay no arrangement fees or interest for the first 12 months. The Borrower will pay interest post 12 months and capital repayments are required to be made for the full term (for a loan product).
• Some finance providers may provide this as an overdraft facility if required.
• CBILS provides lenders with a Government-backed guarantee of 80% on facilities of up to £5 million in cases where a lender would not otherwise be able to provide finance to a business. Lenders are encouraged and may still require security for the facility.
• The Business will always remain responsible for repayment of the whole (i.e 100%) amount of the debt.
• The lender makes the decision and has the authority to decide whether to offer a business finance.
• Under the scheme, lenders will not take personal guarantees of any form for facilities below £250,000.
For facilities above £250,000, personal guarantees may still be required, at a lender’s discretion, but:
• recoveries under these 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 Principal Private Residence (PPR) cannot be taken as security to support a personal guarantee or as security for a CBIL backed facility.
• If one lender turns you down you can approach another lender within the scheme.
Anita Roberts – Business Relationship Director, Santander Corporate and Commercial
Wesley Lovett – Head of Business Development, BCRS
Once you have booked your place we will send you an email with the Zoom meeting details you will need to gain entry to the meeting.