Businesses have never experienced a more challenging time than the one in which we currently find ourselves. The government has responded with a range of support measures for SME’s. There are two relevant schemes for SME’s. The Bounce bank Loan Scheme for loans up to £50k or 25% of annual turnover whichever is the higher. The other scheme is the Coronavirus Business Interruption Loan Scheme (CBILS). Both loan schemes offer repayment terms over 6 years with no early repayment penalties.

The deadline for applications for both schemes is currently set at 30th November, with very little chance of being extended. Act now!

These are government initiatives to help businesses in the UK affected by coronavirus. CBILS is the larger scheme designed for small and medium-sized businesses to access loans and other kinds of finance from £50,001 up to £5 million.

For CBILSs of up to and including £250k no Directors Personal Guarantees are permitted in support of loans to a company.

The CBIL Scheme is for businesses who are in need of:

  • Funds for expansion or acquisition, including purchasing new plant and equipment
  • Working capital impacts, including increasing stock to guard against disruption in supply chains, paying key suppliers earlier to support them, cover rising material costs etc
  • Debt consolidation to improve cash flow, including refinancing expensive / short term personal debt used to start up or scale up businesses.

The government pays interest and loan arrangement fees for the first 12 months.

Who is eligible for CBILS loan?

You can apply for a loan if your business:

  • is based in the UK
  • have an annual turnover of no more that £45 million
  • Confirm the business was not in financial difficulty on the 31st December 2019
  • have a borrowing proposal which the lender would consider viable were it not for the current pandemic

How long do I have to pay the loan back?

CBILS loans are available for terms of up to six years and often include a 12-month capital repayment holiday. There are no interest costs or fees to pay in the first 12 months because these costs are paid by the government. There is no penalty for early repayment providing excellent flexibility.


For more information on this incentive visit