|Which institutions will be administering the loans?
The CBILS is available through participating, accredited lenders, which include Barclays, Santander, Secure Trust and Lloyds. A full list of accredited is on the British Business Bank website.
Businesses are being advised to contact their own lender in the first instance.
|What are the types of finance that can be accessed?
CBILS supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance.
|Who is eligible?
To be eligible for a facility under CBILS, an SME 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 current pandemic, would be considered viable by the lender, and for which the lender believes the provision of finance will enable the business to trade out of any short-to-medium term difficulty.
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 union.
|What is the cost to the borrower?
•There is no guarantee fee for SMEs to access the scheme
• Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees
• Fishery, aquaculture and agriculture businesses may not qualify for the full interest and fee payment
• We understand that some lenders indicated that they would not charge arrangement fees or early repayment charges to borrowers under the scheme
| What is the cost to the lender?
||Lenders will pay a fee to access CBILS
| Is there any protection for lenders?
||The Government will provide lenders with a partial guarantee (80%) against the outstanding facility balance, subject to an overall cap per lender.
| What are the terms of the facility?
• Maximum value of a facility provided under CBILS will be £5million
• Repayment terms are up to six years for term loans and asset finance facilities; and for overdrafts and invoice finance facilities, up to three year
• Security - at the discretion of the lender, CBILS may be used for unsecured lending for facilities of £250,000 and under. For facilities above £250,000, the lender must 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.
• The borrower always remains 100% liable for the debt
||This is at the full discretion of the relevant lender. The hope is the government guarantee will ease credit decision making processes and potentially turn 'no' decisions to 'yes' decisions.
| How to become an accredited lender?
||Applications are to be submitted via British Business Bank, although we note the current position of the BBB that, due to urgency to get CBILS up and running, BBB's priority is to implement CBILS though existing accredited lenders.