As part of the Government’s package to support small businesses and their cash flow during this crisis, CBILS launched on 23 March 2020. The scheme aims to give SMEs financial support whilst providing billions of pounds worth of guarantees at a wholesale level to domestic banks across the UK.
You can access the scheme by visiting the British Business Bank directly, and enquire with each provider of your choice. However, we appreciate that this is a time consuming and lengthy process.
If you register through our FSB Funding Platform, you can make one simple and easy application, saving you time and effort. We then do the hard work for you by checking your eligibility with our current list of providers. Not all providers are available through the Funding Platform at the moment, but more are being added. We can also use your application to suggest other funding options available to you.
FSB Funding Platform is able to offer you help within 48 hours, based on a combination of intelligent technology and excellent customer service.
Please do go online first, because it makes it easier for us to assist you and provide you with information that is relevant for your circumstances. You can also call 0330 097 2359, but advice will be of a more general nature, until we have further details from you via our platform.
CBILS covers Term Loans, Asset Finance, Invoice Finance and Revolving Credit (Overdrafts). Please also note that banks have agreed they will not take personal guarantees as security for lending below £250,000.
The CBILS application requires more detail than a standard business finance application, which is why the FSB Funding Platform is streamlining the process to save you time.
The main reason for this is to help lenders understand the impact of the coronavirus pandemic on your trading pattern. A key criterion of the scheme is to satisfy the lender that your business would be considered viable, were it not for the COVID-19 pandemic.
There are several reasons why you might get offered a business loan outside of CBILS:
Your business does not automatically qualify for funding. The eligibility criteria will vary for each lender, and as such each lender has the authority to decide whether to offer finance to your business or not.
A good way to think about this, is that the Government provides backing at a ‘wholesale’ level to accredited lenders. And then each lender turns CBILS into ‘market-facing’ products. In practice this means that some lenders will offer one type of product, and larger providers may offer several business finance options. To learn more about lenders’ requirements, see the British Business Bank Quick Eligibility Checklist.
As of 3 April 2020, the following product types are in scope:
At launch of the scheme, there has been some confusion about the security businesses need to provide to qualify for a CBILS loan.
The Government has clarified on 3 April 2020, that lenders are banned from requesting personal guarantees on loans under £250,000.
For facilities above £250,000, personal guarantees may still be required, but:
If you have been offered finance and are unsure about the terms, you can request a callback from the team at FSB Funding Platform. We are always happy to try and help you review your options.
Yes, as with all business finance arrangements, your business will be charged interest by the lender. The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied charges.
However, since each lender needs to turn the Government’s guarantee scheme into ‘market-facing’ finance products, there is no ‘standard’ interest rate.
Please also remember, any business borrowing funds under CBILS remains fully liable for the debt. As such, the usual considerations in terms of affordability, etc. do still apply, e.g.:
Because the Coronavirus pandemic affects businesses in different ways, you will find that CBILS applications require more detail than a standard business finance application.
We have updated FSB Funding Platform to help you save you time when applying online, but expect to answer the following questions from lenders:
The above list will vary for each lender, but what is a common theme is that you will need to provide evidence to show that your business can afford to repay the amount you are borrowing plus interest. Users of FSB Funding Platform have the use of Open Banking and accounting software integrations to help prepare their finance application in minutes.
Businesses and individuals across the world are facing huge challenges in the face of the coronavirus pandemic. The requirement to stay at home and to social distance or self-isolate presents new threats to a wide range of businesses and services, and many businesses are forced to access finance in ways they previously have not done.
The UK Government recognises these challenges and have announced a new scheme to help small and medium-sized businesses affected by coronavirus (COVID-19) to apply for loans between £2,000 and £50,000 spread over terms with up to 6 years.
The coronavirus small business Bounce Back Loan scheme aims to simplify the application process and was launched at the beginning of May. There are no fees or interest to pay during the first 12 months. Also, the government has worked with lenders to agree a low rate of interest (2.5%) for the remaining period of the loan. However, if you are accepted for a loan under this scheme, you won’t be able to apply for a CBILS loan later.
We’ve updated our platform to help you check which provider your business is eligible for. At the moment we feature 12 Bounce Back Loan providers and we may add to this number as more become accredited.