CBILS Changes table

 

Coronavirus Business Interruption Loan Scheme
(at 23 March 2020)

Coronavirus Business Interruption Loan Scheme Revised Terms
(6 April onwards)

Provides the lender with a government-backed, partial guarantee (80%) against the outstanding guarantee facility balance, subject to an overall portfolio cap

No change

No guarantee fee for smaller businesses to access CBILS

No change

A fee charged to lenders for each facility which makes use of the scheme

No change

Government has confirmed that the scheme will be demand-led and will be resourced accordingly

No change

The maximum value of a facility provided under the scheme is £5m (the original announcement suggested a maximum value of £1.2m)

No change

Repayment terms limited to a maximum of six years for term loan and asset finance facilities up to £5m. For overdrafts and invoice finance facilities, terms will be up to three years

No change

Use of personal guarantees permissible for all facility sizes, at a lender’s discretion and in line with their normal policies

For facilities under £250,000, use of personal guarantees not permitted under the scheme

For facilities above £250,000, use of personal guarantees still permissible in line with their normal policies, but recoveries under these will be capped at a maximum of 20% of the outstanding CBILS facility amount (after other recovery proceeds applied)

Lenders required to demonstrate lending additionality (i.e. lending that without the scheme, wouldn’t have otherwise taken place)

Scheme expanded to open-up access to those smaller businesses who would have previously met requirements for a commercial facility and would not have been eligible for CBILS

For facilities above £250,000, the lender must establish a lack or absence of security prior to businesses using CBILS.

Insufficient collateral requirement removed, allowing those SMEs who are considered to have sufficient collateral to access CBILS facilities

At the discretion of the lender, the scheme may be used for unsecured lending for facilities of £250,000 and under

For facilities under £250,000, use of personal guarantees not permitted under the scheme

For borrowing proposals which, were it not for the current pandemic, would be considered viable by the lender.

Viability assessment unchanged but for small loans this determination could be based on the lenders’ internal credit models

Available to UK-based businesses with annual turnover of up to £45m per year

No change

Principal Privates Residences cannot be secured (prior or post recovery) to support CBIL backed facilities.

No change

[1] 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
[2] Fishery, aquaculture and agriculture businesses may not qualify for the full interest and fee payment.
[3] The following are not eligible under CBILS: Banks, Insurers and Reinsurers (but not insurance brokers); public sector bodies, further educational establishments if they are grant funded and state funded primary and secondary schools.