The coronavirus business interruption loan (CBILS) is a form of financial support during COVID-19 for larger businesses, rather than the self-employed.
Business Interruption Loan (CBILS)
The CBILS loan offering larger businesses financial support of between £50,000 to £5m. The loans are being made by major banks and are 80% government-backed, to give lenders confidence that they will get repaid. In addition, the government will also make a one-off payment to cover the first 12 months of interest payments, to help reduce the cost and initial repayments.
Who Can Claim the Loan
The CBILS loan is available for UK business with a turnover of no more than £45 million per year who meet the British Business Bank eligibility criteria including having a viable business were it not for COVID-19 and not classed as a “business in difficulty”.
As part of the application processes business owners will need to provide the bank they are applying through with details of the loan and supporting documentation such as:
- Cashflow forecast
- Management accounts
- Historic accounts
- Details of why the loan is required, how it will be used and how the repayments will be made.
How to Apply for CBILS
There are 40 accredited finance providers including Barclays, Metro Bank and Natwest. Check here for a full list of providers.
New Here? Learn how to set up the financial side of your business with these easy to understand guides and resources:
- Sole Trader or Limited Company? – Download my free calculator to check which business structure would help you to pay less tax;
- Government Support For the Self-Employed During Coronavirus – Find out about the schemes available, which ones you are eligible for and how to claim;
- Tax Records and Bookkeeping – Understand what tax records you’ll need to keep and how to set up your own bookkeeping system;
- How to Fill In Your Tax Return Online – In this step-by-step guide, you’ll find everything you need to know to fill in your tax return online and beat the HMRC deadline.
- Self Employment Taxes Explained – Learn what taxes you’ll pay, how much and when;
- VAT Guides – From registration to de-registration, VAT schemes and thresholds, these guides will take you through the basics every UK small business owner needs to know;
- Invoice Template – Free template and step-by-step guide so you can get paid by your clients.