GOV.UK, "Apply for the Coronavirus Business Interruption Loan Scheme" (withdrawn)

Summary

A GOV.UK guidance page, Apply for the Coronavirus Business Interruption Loan Scheme, from the Department for Business, Energy & Industrial Strategy and British Business Bank, published 23 March 2020 and last updated 18 December 2020. The page's update list records the application deadline extended to 31 March 2021, and it states that the guidance was withdrawn on 1 April 2021. It describes loans and other finance up to £5 million, with the government guaranteeing 80% of the finance to the lender. It sets out eligibility, including a UK base and annual turnover of up to £45 million, the maximum facility lengths, and the documents a lender may ask for.

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Guidance

Apply for the Coronavirus Business Interruption Loan Scheme

The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses affected by coronavirus (COVID-19).

Updates to this page

From:

Department for Business, Energy & Industrial Strategy and British Business Bank

Published:

23 March 2020

Last updated:

18 December 2020 Show all updates 18 December 2020 Application deadline extended to 31 March 2021. 30 November 2020 Number of participating lenders now 117. 2 November 2020 The application deadline has been extended to January 31 2021. 29 October 2020 The Coronavirus Business Interruption Loan Scheme scheme will close to applications after 30 November 2020. 1 May 2020 Further education establishments are now eligible for the scheme. We have also removed the portfolio-level cap on a lender's claims on the government guarantee. 23 March 2020 First published.

This guidance was withdrawn on 1 April 2021

The Coronavirus Business Interruption Loan Scheme closed to new applications on 31 March 2021.

The scheme helps small and medium-sized businesses to access loans and other kinds of finance up to £5 million.

The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.

The scheme is open until 31 March 2021.

If you’re a larger business, you may be entitled to other government support .

Eligibility

You can apply for a loan if your business:

- is based in the UK
- has an annual turnover of up to £45 million

You need to show that your business:

- would be viable were it not for the pandemic
- has been adversely impacted by the coronavirus

If you want to borrow £30,000 or more, you also need to confirm that your business wasn’t classed as a business in difficulty on 31 December 2019.

Who cannot apply

Businesses from any sector can apply, except:

- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- state-funded primary and secondary schools

How long the loan is for

The maximum length of the facility depends on the type of finance you apply for and will be:

- up to 3 years for overdrafts and invoice finance facilities
- up to 6 years, for loans and asset finance facilities

How to apply

There are 117 lenders participating in the scheme including all the main retail banks. You should approach a suitable lender yourself via the lender’s website.

You’ll need to tell the lender:

- the amount you’d like to borrow
- what the money is for
- how long you’d like to pay it back

Supporting documents

You’ll need to provide documents that show you can afford to repay the loan.

These may include:

- management accounts
- cash flow forecast
- business plan
- historic accounts
- details of assets

The documents required will vary from lender to lender and depend on how much you’re asking for. If you’re asking your existing lender for a small loan, the process may be automated and not require all of the documents.

The lender will check that the loan is:

- for a suitable business purpose
- affordable for you
- the right type of finance for your needs

The lender will decide whether to offer you a loan or another type of finance and you’ll be responsible for repaying 100% of the amount borrowed.

Find a lender

If the lender turns you down

If one lender turns you down, you can apply to other lenders in the scheme .

You may want to consider using a broker to find the right type of finance for your needs, or do your own research using the British Business Bank’s finance guide .

Find out how other businesses have used the Coronavirus Business Interruption Loan Scheme .

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