The Fast Way To Get A £100000 UK Government Backed Business Interruption Loan

Written by Editorial Team
Last updated: 19th May 2020

If you are looking to get fast business loan funding for your business the UK Government has launched CBILS.

How Does The CBILS (Coronavirus Business Interruption Loan Scheme) Work?

The Coronavirus Business Interruption Loan Scheme (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.

  • The scheme supports small & medium-sized businesses with an annual turnover of up to £45 million to access a term loan, overdraft, invoice finance or asset finance up to £5 million for up to 6 years. 

  • The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees.

  • This means smaller businesses will benefit from no loan repayments in the first 12 months.

  • No personal guarantees will be taken in any form for loan facilities taken up to £250,000.

  • The borrower remains 100% liable for the debt.

The CBILS scheme gives lenders a government backed guarantee for the loan repayments to encourage more lending.

How Do I Access The CBILS Scheme

You will need to apply for the scheme to one of the participating lenders on the scheme. Currently 42 lenders at the time of writing.

You can do this either:

  • Directly: Approach your bank if they are on the panel or one of the bank/lenders on this list

  • Through a finance broker: A good business finance broker will assess your circumstances and the type of finance you need. If you need funds quickly this may be a better way for you to go.

Do I Need To Provide A Personal Guarantee

If you are borrowing less than £250,000 no personal guarantee is required. For loans in excess of £250k a personal guarantee may be required but this cannot be your personal residence.

If I Am Turned Down By A Lender Can I Approach Another Lender?

Yes. You can still approach other accredited lenders. This is where a broker can help to ensure you approach the right lender for your business.

How Much Interest Will I Have To Pay?

The good news is that there are no upfront costs.

This is because the Government is funding these charges and also covering interest payments in the first 12 months.

Click here to speak to a specialist business loan broker »