Coronavirus Business Interruption Loan Scheme (CBILS)

What you need to know

The government and bank rollout of the recently-introduced CBILS has been widely criticised, leading the Chancellor to announce a number of changes forcing banks to increase lending.

Can this help my SME?

The changes announced now mean that SMEs with a years’ trading history are now eligible to apply as long as they can demonstrate proof that their business will be able to repay the loan. Under the CBILS, government guarantees can be used to secure overdraft facilities, term and asset-backed loans, with an initial 12-month interest-free period.

    Need a loan? Here’s our guide to a successful application:

    • Think ahead. What cash does your business need to survive over the next 6 months? It’s important you estimate exactly how much cash your business will need to survive. As a general rule, loans are available at a maximum of 25% of the previous years’ turnover or twice the past years’ wage bill, whichever is higher. You should not ask for any more than this. Check your eligibility for the other government schemes, including Business Rates grants and the Job Retention Scheme.
    • The lower limit for CBILS loans is now £10,000 at most banks. Any lower amounts may be ineligible for the government guarantee. In fact, it has been reported that Lloyds Bank has set a lower limit of £25,000 – so please bear this in mind if you bank with them.
    • You will need a basic business plan which explains what your business does, how it’s been affected by COVID-19 and what the raised funds will be used for.
    • Please prepare a minimum of one years’ accounts (ideally 2 years’ worth or more) and management accounts until the end of March.
    • You will need a list of your debtors and creditors, as well as information about any other business debts and repayment schedules and details of all directors or owners.
    • Contact your bank as soon as possible. If you are directed to request a callback, please ensure you do so and prepare all the necessary documents and information listed above.
    • If you are facing imminent financial difficulties, make sure you stay on the line to speak to your bank as many have now relaxed their overdraft eligibility criteria and you may be able to secure or extend one!

        Contact Rich Visions today

        Our Rich Visions team are offering free consultations for SMEs to ascertain their eligibility for the scheme and can also offer further support throughout the application process. If this is of interest to you, please fill out the form below and a member of our team will be in touch.

        Contact us on our emergency business hotline. We’re available if you need to speak about COVID-19 and your business during the bank holiday period and beyond – 07383 876142

        Please note only company owners/directors will be eligible to apply.

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