CBILS is a new scheme that can provide facilities of up to £5m for smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow. CBILS supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities.
The scheme provides the lender with a government backed guarantee potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’.
The scheme went live on Monday 23 March and will initially run for six months.
Please note: It’s important that you are aware that you, the borrower will always remain 100% liable for the debt. The CBILS guarantee is to the lender, not you, the SME.
Smaller businesses (SMEs) from all sectors can apply for the full amount of the facility, up to a maximum of £5m. To be eligible for a facility under CBILS, your business must:
CBILS is available through the British Business Bank’s 40+ accredited lenders, which are listed on the British Business Bank website here. In the first instance, businesses should approach their own provider ideally via the lender’s website. They may also consider approaching other lenders if they are unable to access the finance they need. Decision making on whether you are eligible for CBILS is fully delegated to the 40+ accredited CBILS lenders. These lenders range from high-street banks to challenger banks, asset-based lenders and smaller specialist local lenders.
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. These businesses can contact HMRC’s new dedicated COVID-19 helpline from 11 March 2020 for advice and support. To ensure ongoing support, HMRC has made a further 2,000 experienced call handlers available to support firms and individuals when needed. If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.
Please contact us if you have any queries on funding.
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