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Coronavirus Business Interruption Loan Scheme & Bounce Back Loans

A quick look guide, references and links for the CBILS and BBL for businesses during the Coronavirus pandemic. Written and compiled by our Business Growth Adviser, Stephen Hart.

As of 2 November 2020, the Government has announced that it will be extending the Bounce Back Loan Scheme (BBLS), the Coronavirus Business Interruption Loan Scheme (CBILS) until 31 January 2021.

 

Bounce Back Loans (BBL):

 

  • For SMEs, micro businesses and other businesses.
  • No set-up fees and Government covers first 12 months of interest payments.
  • Term loan repaid over six years, and now extendable for up to 10 years.
  • No repayments during the first 12 months.
  • Borrow £2000 or 25% of turnover, up to £50000
  • Interest rates fixed at 2.5%

 

https://www.british-business-bank.co.uk/finance-hub/bounce-back-loan-scheme/

 

Coronavirus Business Interruption Loan Scheme (CBILS):

 

  • For smaller businesses with a turnover of less than £45m.
  • No set-up fees and Government covers first 12 months of interest payments.
  • Business loans, overdrafts, invoice finance and asset finance available.
  • Borrow up to £5 million
  • Interest rates vary between lenders.
  • Turnover of at least £200000
  • Trading for 3 years
  • Business is liable for the full loan amount. If the business is unable to repay, the scheme provides a partial guarantee to the lender, not to the business. A personal guarantee is required for CBILS loans of over £250,000.

https://www.british-business-bank.co.uk/finance-hub/coronavirus-business-interruption-loan-scheme/

 

Some providers are giving you windows of flexibility to either convert to interest only for a period of usually up to 6 months, or to defer payments of capital, again for up to 6 months, however this at the lender’s discretion.

 

Some providers will allow you to apply for a BBL if you use a personal account business purposes, and can prove to them that it is the sole use of the account. Applicable to Sole Traders.

 

If you have already taken a BBL and you wish to top up the loan, you must:

 

  1. Approach your original lender.
  2. Use the exact same financial information as in your original application. Failure to do this will see applications declined.
  3. Only request up to the maximum amount available through the scheme, e.g. 25% of annual turnover or £50000.

 

List of BBL lenders:

 

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/current-accredited-lenders-and-partners/

 

List of CBILS lenders:

 

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/current-accredited-lenders-and-partners/

 

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/for-businesses-and-advisors/

 

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/for-businesses-and-advisors/

 

 Download this information in a PDF here