The Coronavirus Business Interruption Loan Scheme (CBILS) is now operational and has been significantly expanded with changes to the scheme’s features and eligibility criteria. Our Business Services Team is already working with clients to access funding under this scheme.  Access to the scheme has been opened up to those smaller businesses who would have previously met the requirements for a commercial facility but would not have been eligible for the CBILS.

New Features
• No personal guarantees for facilities under £250k: Personal guarantees of any form cannot be taken under the scheme for any facilities below £250k.
• Personal guarantees for facilities above £250k: Personal guarantees may still be required, at a lender’s discretion, but recoveries under these are capped at a maximum of 20% of the outstanding balance of the CBILS facility after the proceeds of business assets have been applied.
• A Principal Private Residence (PPR) cannot be taken as security to support a personal guarantee or as security for a CBIL backed facility.
• Security: For all facilities, including those over £250,000, CBILS can now support lending to smaller businesses even where a lender considers there to be sufficient security, making more smaller businesses eligible to receive the business interruption payment.

To find out how we can help you to make an application to the CBILS please contact Stephen McConnell, Business Services Partner