Coronavirus: Apply for the Coronavirus Business Interruption Loan Scheme - for small and medium-sized businesses

[Closed to applications] Scheme for small and medium-sized businesses affected by coronavirus to access finance of up to £5 million

This scheme provides financial support to smaller businesses affected by coronavirus (COVID-19).

The Coronavirus Business Interruption Loan Scheme (CBILS) helps small and medium-sized businesses to access loans and other kinds of finance up to £5 million.

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

If you're a larger business, you may be entitled to other 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 per cent 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.

First published 20 March 2020