The Scheme provides UK-based SMEs with turnovers of up to £45 million access to facilities of between £50,001 and £5 million interest-free for 12 months, backed by an 80 per cent guarantee from the Government. With the introduction of the Bounce Back Loan Scheme the minimum loan is now £50,001.
Am I eligible?
The British Business Banks says that businesses that meet the following conditions must be considered for CBILS:
- Be UK-based in its business activity
- Have an annual turnover of no more than £45 million, of which more than 50 per cent is generated through trading activities
- Have a borrowing proposal which the lender would consider viable, were it not for the current pandemic
- Self-certify that it has been adversely impacted by the coronavirus (COVID-19).
Full details of eligibility and an FAQ link to the British Business Bank can be found here.
How do I apply?
The scheme will be delivered through existing commercial lenders, backed by the Government-owned British Business Bank. There are currently 40 accredited lenders able to offer the scheme, but more are being added regularly.
Commentary
We now have had experience with assisting some clients and working with banks in relation to this scheme. This is a typical list of what the banks are wanting to see:
1) Complete a 6 months cashflow projection
2) Provide the last 3 years accounts – these need to confirm profitability and evidence to the bank that the proposed loan would be serviceable based on past performance.
3) Complete a personal income and expenditure.
5) Confirm the other avenues of support available to you – Salary Support Scheme, deferment of tax, Rates Grants etc.
6) Provide with a bit of background to the business and the direct impact that Covid-19 is having upon it.