Coronavirus Business Interruption Loan Scheme (CBILS)

4Syte has been approved for accreditation to the government-backed Coronavirus Business Interruption Loan Scheme (CBILS) by the British Business Bank. Read on to learn more.
IMPORTANT NOTICE: 4Syte offers CBILS facilities to run alongside an Invoice Finance facility. Standalone loans will NOT be considered.

Check 4Syte’s CBILS Eligibility Criteria

Check 4Syte’s CBILS Eligibility Criteria

Overview

4Syte has been approved for accreditation to the government-backed Coronavirus Business Interruption Loan Scheme (CBILS) by the British Business Bank. This will allow 4Syte to support UK SMEs during the Covid-19 outbreak by providing CBILS top-up Invoice Finance facilities.

The scheme can be utilised alongside an Invoice Finance facility to provide additional lending of up to £500k.

Important notice: 4Syte offers CBILS facilities to run alongside an Invoice Finance facility. Standalone loans will not be considered.

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About CBILS

The Coronavirus Business Interruption Loan Scheme (CBILS), delivered through British Business Bank accredited lenders and partners, is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak. The scheme enables lenders to provide facilities to smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.

It supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities.

Invoice Finance Provider

Scheme Features

Key scheme features provided by 4Syte:
  • Up to £500k facility
  • No guarantee fee for SMEs to access the scheme
  • Interest and fees paid by Government for 12 months: The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees [1] , so smaller businesses will benefit from no upfront costs and lower initial repayments [2]
  • Finance terms: terms will be up to three years.
  • Guarantee to the lender: The scheme provides the lender with a government-backed, guarantee against the outstanding facility balance. The borrower always remains 100% liable for the debt.
  • Principal Private Residence (PPR) – A borrowers/guarantors PPR cannot be taken as security to support a Personal Guarantee or as security for a CBILS- backed facility.
  • The borrower always remains 100% liable for the debt.

[1] 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. HM Government greatly appreciates this approach by lenders.

[2] Fishery, aquaculture and agriculture businesses may not qualify for the full interest and fee payment.

Scheme Features

Additional notes on security:
  • No personal guarantees for facilities under £250k: Personal guarantees of any form cannot be taken under the scheme for any facilities below £250k.
  • Personal guarantees for facilities above £250k: Personal guarantees may still be required, at a lender’s discretion, but recoveries under these are capped at a maximum of 20% of the outstanding balance of the CBILS facility after the proceeds of business assets have been applied. A Principal Private Residence (PPR) cannot be taken as security to support a personal guarantee or as security for a CBIL backed facility.
  • Security: For all facilities, including those over £250,000, CBILS can now support lending to smaller businesses even where a lender considers there to be sufficient security, making more smaller businesses eligible to receive the business interruption payment [3].

[3] Please note that where there is sufficient security available, it is likely that the lender will take such security in support of a CBILS facility

Eligibility Criteria

Smaller businesses from all sectors [4] can apply for the full amount of the facility. To be eligible for a facility under CBILS, a smaller business must:
  • Be UK based in its business activity, with turnover of no more than £45m per year
  • Have a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender
  • Self-certify that it has been adversely impacted by the Coronavirus

Please note: The following are not eligible under CBILS:

  • Banks, Insurers and Reinsurers (but not insurance brokers);
  • Public sector bodies and;
  • State funded primary and secondary schools

[4] The following are not eligible under CBILS: Banks, Insurers and Reinsurers (but not insurance brokers); public sector bodies, and state funded primary and secondary schools.

Managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit british-business-bank.co.uk.

CBILS SME Checklist

This is a checklist to help you understand if you may be eligible to apply for a CBILS-backed facility. Lenders will need further information to confirm your eligibility, this is simply a quick reference guide and is not a confirmation of approval.

CBILS FAQs

British Business Bank have compiled responses to some of the most frequently asked questions from SMEs about CBILS. Click on the link below to read more.

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Chelmsford Office
Head Office

Second Floor, Steeple House, Church Lane, Chelmsford, Essex, CM1 1NH
01245 377 032 info@4syte.co.uk

London Office

224 Linen Hall, 162-168 Regent Street, London W1B 5TE
01245 377 032 info@4syte.co.uk

Leeds Office

17 Park Place, Leeds, West Yorkshire LS1 2SJ
01134 033 302 info@4syte.co.uk