MSIF can support both existing and new clients with CBILS. The Coronavirus Business Interruption Loan Scheme (CBILS), delivered through 40+ 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 of up to £5m 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.
Please be aware that CBILS is one example of multiple measures announced by Government. You can find full details of the temporary, timely and targeted approaches to support businesses through this period of disruption caused by COVID-19 here.
Eligibility & Application
We strongly encourage any business, including existing MSIF clients, looking for the support of CBILS, to contact their original finance provider and bank in the first instance.
We would also recommend that all applicants who having already spoken to their bank, and still wish to apply for MSIF loans underwritten by CBILS, should fully explore:
- What their current finance provider / bank can do to help, including through non CBILS means
- The Coronavirus Job Retention Scheme
- Any potential savings in their discretionary spending
- Any potential agreements with their creditors, in particular landlords
- VAT and Income Tax payments deferral
- The HMRC Time To Pay Scheme
- The 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses
- Small business grant funding of £10,000 for all business in receipt of small business rate relief
- Grant funding of £25,000 for retail, hospitality and leisure businesses with rateable values between £15,001 and £51,000
To support business through CBILS, the company must have a borrowing proposal which, were it not for the current pandemic, would be considered viable by MSIF and self-certify that it has been adversely impacted by the Coronavirus (COVID-19).
Insufficient security is no longer a condition to access the scheme.
Please note that we are limited in how many businesses we can allocate support to with this scheme. We expect the average CBILS loan to be well below £250k despite the theoretical £5m maximum.
Note that the borrower remains responsible for repayment of 100% of the outstanding facility at all times and not just the amount of the facility outside the coverage of the Government guarantee.
The Coronavirus Business Interruption Loan Scheme (CBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS). British Business Bank plc is wholly owned by HM Government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). Full details on CBILS and the list of participating CBILS lenders can be found on the British Business Bank website at: www.british-business-bank.co.uk/CBILS