Coronavirus Business Interruption Loan Scheme
We can help your business package and present your loan application for the Coronavirus Business Interruption Loan Scheme (CBILS) to support you through this period of disruption.
No Interest For1 Year
How It Works
We have a dedicated team of advisers using our existing technology and experience to submit CBILS applications.
Complete our CBILS application form and let us know about your business and why you need a CBILS loan.
If your scenario is eligible, we will send you a link to your online case with us.
We will assess your case from a lenders perspective to make sure you have the information required for a CBILS application.
If you we can support your application we will request payment of a £399 non-refundable packaging fee.
We will submit your case to lenders who can support your application.
We will present 'approved' offer terms to you (loan amount, rate, duration) for your consideration. You may be offered Standard Loan Terms, not CBILS terms, however these can come with capital repayment holidays (interest still needs to be serviced). If no offers could be sourced you will be informed.
The lender will take over to arrange releasing funds
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Frequently Asked Questions
Need answers? We got 'em.
We understand that some people may feel that charging a fee under the circumstances is immoral. We want to assure you that we have considered all the options at our disposal before deciding on a packaging fee, and the level of fee required.
Due to the large demand we are already seeing for this service and expected increase we simply would not be able to dedicate our full effort towards the CBIL scheme without this fee.
B2Bfinance.com traditionally does not charge a fee for our services, in normal circumstances we take a commission from the lender. However, most lenders have agreed that for the CBILS applications they will not charge fees, therefore they cannot pay brokers a commission for their time spent packaging and presenting cases.
For this reason, the fee charged reflects the brokers time packaging, submitting and chasing up a case, rather than a percentage of the loan amount requested.
A broker can assist in the following ways;
We will package your case into a structure which will allow a lenders underwriting team to make a quick decision on your loan application.
We will start with the cheapest lenders first and then try 'next best' alternatives until we exhaust all options to secure you a loan.
Because of our daily interaction with lenders we have channels of communication with them that are not impacted by the present customer call center queues.
We can save you time packaging, chasing and submitting information to lenders, allowing you to focus on your business.
Loans in the scheme are limited to a maximum of 25% of 2019 turnover, or double the annual wage bill in 2019, whichever is greater;
CBILS guarantees facilities from £25,001 up to a maximum of £5m available on repayment terms up to six years for term loans and asset finance. For overdrafts and invoice finance facilities, terms will be up to three years. The scheme provides the lender with a government backed partial (80%) guarantee against the outstanding facility balance.
There is no guarantee fee for SMEs to access the scheme. Lenders will pay a fee to access the scheme. The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees.* You (the SME) will therefore benefit from no upfront costs and lower initial repayments.**
At the discretion of the lender, the scheme may be used for unsecured lending for facilities of £250,000 and under. For facilities above £250,000, the scheme requires the lender to establish a lack or absence of security prior to businesses using CBILS. Primary Residential Property (PPR) cannot be taken as security under the scheme. If the lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.
Please note: It’s important that you are aware that you, the borrower will always remain 100% liable for the debt. The CBILS guarantee is to the lender, not you, the SME.
* Following earlier discussions with the banking industry, some lenders indicated that they would not charge arrangement fees or early repayment charges to SMEs borrowing under the scheme.
** Fishery, aquaculture and agriculture businesses may not qualify for the full interest and fee payment.
Smaller businesses (SMEs) from all sectors* can apply for the full amount of the facility, up to a maximum of £5m.
To be eligible for a facility under CBILS, your business must:
Be UK based in its business activity with annual turnover of no more than £45m
Have a borrowing proposal which, were it not for the COVID-19 pandemic, would be considered viable by the lender, and for which the lender believes the provision of finance will enable your business to trade out of any short-to-medium term difficulty.
If the lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.
* The following trades and organisations are not eligible to apply: Banks, Building Societies, Insurers and Reinsurers (but not insurance brokers); The public sector including state funded primary and secondary schools; Employer, professional, religious or political membership organisation or trade unions.
The government has made it seem that CBILS lenders are going to give money away. This is not the case. The reality is if you were not eligible for lending before the crisis began, you won’t be eligible now.
The difference with CIBLS is that you won’t pay any ‘lender arrangement fees’ to access the loan, or interest for 12 months. On top of this most CBILS lenders have also agreed to provide an ‘initial capital repayment holiday’. Generally, this is 12 months (some only offer 4 months), meaning you will have a period at the start of your loan with nothing to pay.
Under CBILS lenders are technically only responsible for 20% of what they lend. However, they have to rely on the government to guaranteed the other 80%. The current government stance is that in the event of a loan defaulting, they will only pay their share if the lender has “exhausted all other attempts to collect”.
This position is deliberate as it causes lenders to “lend responsibly”. It can be very costly for lenders to try and collect loans that go in to default. Under present rules, those extra administration costs will ultimately come from their share.
There are a few official sources that you can follow for up to date news on the CBILS.
The scheme went live on Monday 23 March and will initially run for six months.
The scheme is designed to support smaller businesses (SMEs) who don’t meet a lender’s normal lending requirements for a fully commercial loan or other facility, but who are considered viable in the longer-term.
Businesses from any sector can apply, except the following:
Banks and building societies
Insurers and reinsurers (but not insurance brokers)
Public-sector organisations, including state-funded primary and secondary schools
Employer, professional, religious or political membership organisations
Potentially, if your business activity is primarily UK-based. For early stage businesses in their first two years of trading, the British Business Bank’s "Start Up Loans" programme (loans £500 to £25,000 at 6% p.a. interest) may be more suitable. Visit startuploans.co.uk for more information.
At the discretion of the lender, the scheme may be used for unsecured lending for facilities of £250,000 and under. For facilities above £250,000, it requires the lender to establish a lack or absence of security prior to businesses using CBILS. Primary Residential Property (PPR) cannot be taken as security under the scheme.
Note: If the lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.
Yes. You must show in your borrowing proposal that were it not for the COVID-19 pandemic, your business would be considered viable by the lender, and for which the lender believes the provision of finance will enable your business to trade out of any short-to-medium term difficulty.
If you have a query about an active EFG facility, you should approach your current provider – ideally via their website.
No. Government has confirmed that the amount of funding available under the scheme will be demand-led. Therefore there is no immediate need to approach a lender if you do not need finance in the short-term. The scheme will initially run for six months.
Yes, as long as the business activity is operated through a business account. The scheme is open to sole traders, freelancers, corporate bodies, limited partnerships, limited liability partnerships or other legal entities who carry out a business activity in the United Kingdom, with annual turnover more than £100k in 2019 up to £45m, or an Annual Wage Bill above £12.5k in 2019, operating in all sectors. The business must generate more than 50% of its turnover from trading activity.
We have created a cashflow forecast spreadsheet that will allow you to enter your current bank balance and monthly expenses, which you can use to calculate if you have enough funds to see you through this period of disruption.
You can find the Coronavirus Cash Flow Forecast document here.