Is my business eligible for the Coronavirus Business Interruption Loan Scheme?

23/03/2020

The new Coronavirus Business Interruption Loan Scheme, which was announced in March’s Budget, is now available to eligible businesses.

The scheme is designed to help lenders support those businesses affected most by the coronavirus (COVID-19) pandemic, who might otherwise lack sufficient security to obtain funding.

By guaranteeing up to 80% of the facility, the government essentially provides lenders with protection against potential losses. The aim is that more businesses can access the cash flow support they may urgently require to overcome the unprecedented challenges presented by COVID-19.

Who is eligible for the Coronavirus Business Interruption Loan Scheme?

The Coronavirus Business Interruption Loan Scheme (CBILS) temporarily replaces the Enterprise Guarantee Scheme – initially for six months – and allows eligible small businesses to apply for up to £5 million.

No interest will be due for the first 12 months, and there is no guarantee fee for SMEs to access the scheme. Additionally, some lenders are not charging arrangement fees or early repayment charges.

The funding can be provided through a range of finance facilities – loans, invoice finance, asset finance and overdrafts – to support a wide range of cash flow requirements.

In order to be eligible for the Coronavirus Business Interruption Loan Scheme, businesses must conform to the following criteria:

• Be UK based, with a turnover of no more than £45 million per annum
• Generate more than 50% of its turnover from trading activity
• Have a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender

Sole traders and freelancers are also eligible as long as the business activity is operated through a business account.

Finance terms are up to six years for term loans and asset finance, and up to three years for overdraft and invoice finance facilities.

Use our flowchart to check whether your business is eligible…

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How to access the right funding for your business

If you foresee that your business is being or likely to be impacted by the challenges caused by the virus, it’s important to act quickly to have the necessary cash flow support in place to minimise any possible disruption and beat the likely influx of applications.

Even if your business is not eligible for funding through the Coronavirus Business Interruption Loan Scheme, there are a number of finance facilities available to provide support. And while the scheme is available through more than 40 lenders, not every lender provides every type of finance listed.

As an independent commercial finance broker, Hilton-Baird Financial Solutions has helped thousands of businesses to secure the right funding since 1997.

In consultation with you, we can quickly and effectively identify the most suitable finance facilities and lenders and support you throughout the application process – whether through this scheme or otherwise.

To speak with one of our funding experts, call 0800 9774833 or request a call back at a convenient time using the form below.

We look forward to assisting you.

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