Further details have emerged for the Coronavirus Business Interruption Loan Scheme (CBILS) which is designed to assist qualifying businesses during these unprecedented times.
The Scheme aims to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance. The loan will be provided by the British Business Bank through participating providers during the Covid-19 outbreak.
Full details of the CBILS scheme can be foundhere – but the main criteria are:
Loan facilities of up to £5m
80% of the lenders risk is covered
Repayment terms up to 6 years for term loans and asset finance, but overdraft and invoice facilities will be up to 3 years.
No upfront fees and interest is covered by Government for up to 12 months
Companies remain 100% liable for the debt repayments. Total unsecured lending of up to £250,000.
Application for loans from the scheme is administered by over 40 approved lenders including main banks, challenger banks and asset finance etc. Businesses need to apply directly to the lenders and present their case for the finance needed.