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In his announcement for the 2020 Budget, Chancellor Rishi Sunak announced that the Coronavirus Business Interruption Loan Scheme will temporarily replace the Enterprise Finance Guarantee (EFG)

In this week’s blog, The Think Team outline the upcoming changes and what this will mean for UK SME’s

4ED4A980-1367-4548-9284-3CBE142D6E3E Created with sketchtool. What are the changes?

The British Business Bank claims the new CBIL Scheme will operate in a similar way to EFG but will offer more attractive terms to businesses and lenders to help support the continued provision of finance to UK businesses during the health crisis.

Other types of finance will also be supported by the program, but this will depend on the provider.

4ED4A980-1367-4548-9284-3CBE142D6E3E Created with sketchtool. What does CBILS offer?

The CBILS helps facilitate finance to small businesses that are viable, but unable to secure funding due to having insufficient security to meet the lenders requirement. CBILS provides lenders with a government-backed 80% guarantee against the outstanding facility balance – which can potentially enable a ‘no’ decision to become a ‘yes’.

CBILS currently supports a variety of commercial finance products, including:

  • Think BulbTerm facilities
  • Think BulbOverdrafts
  • Think BulbInvoice finance facilities
  • Think BulbAsset finance facilities

4ED4A980-1367-4548-9284-3CBE142D6E3E Created with sketchtool. How much can I borrow?

Currently, an accredited lender can use CBILS to help SMEs access from £1,000 to £1.2 million. For term loans and asset finance, terms currently range from three months to ten years and revolving facilities and invoice finance offer terms up to three-years.

4ED4A980-1367-4548-9284-3CBE142D6E3E Created with sketchtool. What do I need to apply for CBILS?

To be eligible for support via CBILS, small businesses must:

  • Think BulbBe based in the UK, with turnover of no more than £41 million per annum
  • Think BulbOperate within an eligible industrial sector
  • Think BulbHave a sound borrowing proposal, but insufficient security to meet normal lending requirements
  • Think BulbConfirmation that they have not received de minimis state aid beyond £200,000 – equivalent over the current and previous 2 fiscal years

4ED4A980-1367-4548-9284-3CBE142D6E3E Created with sketchtool. How can Think Business Loans help?

At Think Business Loans, we understand the strain SMEs will feel during the health crisis. That’s why we want to ensure your business has the best access to funding to ensure your business is able to survive Covid-19.

Think Business Loans compares hundreds of lenders and match your business using our innovative iFunds® technology, many of which are working with CBILS, to ensure you get the right funding you need to navigate the crisis.

If you would like more information on your current finance options, get in touch with our lending managers today.

Jessica Court

Jessica Court

Jessica Court graduated from the University of Portsmouth in 2017 with a bachelor’s degree in Media Studies. She has previously worked within the In... Explore Author