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CBILS is coming to an end

Updated: 24 September 2020

Update 24/9/20: 

The Chancellor has announced an extension for the Coronavirus Business Interruption Loan Scheme (CBILS), and the deadline to apply has been pushed back to 30th November 2020. With this in mind, we take a look at what you need to know about the ending of the scheme, and how you can best prepare.

Follow the link to apply for a CBILS loan today.

If you’re looking for information about the end of the Bounce Back Loan Scheme (BBLS) click here

What is the Coronavirus Business Interruption Loan Scheme (CBILS)?

The Coronavirus Business Interruption Loan Scheme (CBILS) is provided through the British Business Bank and a group of accredited providers. It’s primarily focused on providing financial support to SMEs who have experienced lost revenue and cash flow disruptions as a result of coronavirus. Businesses can apply for a loan of up to 25% of their annual turnover.

As an accredited provider, we’re able to offer our fast application process to those looking to access the scheme. In addition to the Government paying the interest for the first 12 months as well as the upfront fee, with a Funding Circle CBILS loan, you also won’t need to make any repayments for the first 12 months:

  • Loans between £50,001 and £500,000
  • Rates between 1.8%-7.4% APR*
  • No repayments for the first 12 months
  • Government covers the first 12 months of interest payments
  • No upfront or early settlement fees
  • No personal guarantee on loans up to £250,000
  • Decisions typically within 24 hours

* Rates are accurate as of 24/9/20

To be eligible, your business will need to meet the following criteria:

  • UK-based business that’s been adversely affected by coronavirus
  • Turnover of over £200,000 
  • Minimum 3 years of trading history
  • Over 50% of turnover from trading activity (e.g. not from investments)
  • Loan is for business purposes
  • Loan is primarily for trading in the UK

When will CBILS end?

CBILS has now been extended and applications will be accepted up to 30th November 2020. Those who want to apply will need to have started their application by the end of the day.

Will the CBILS scheme be extended?

On 24th September, the CBILS scheme was extended by the Chancellor, with the deadline now at the end of November. Beyond this, the Government also announced it is working to provide a new government guaranteed loan scheme in January 2021. Please check gov.uk for the most up-to-date information.

Is there a deadline to apply for a CBILS loan with Funding Circle?

In order to apply for a CBILS loan with us, you will need to have started your application by the end of the day on 30th November 2020.

How should I prepare for the end of CBILS?

If you still haven’t taken advantage of the scheme, but think you finance could help you either now or in the  future, it’s worth considering taking out a CBILS loan. The CBIL scheme was designed to help businesses through the pandemic, which means it has better features than most normal loans. 

For instance, the Government pays the interest for the first 12 months of the loan, in addition to paying the upfront fee, which means if you can pay the loan back in full within a year, it won’t have cost you a penny.

However, if you want to borrow less than £50,001, take a look at the Bounce Back Loan Scheme (BBLS).

If you’ve already taken out a Bounce Back loan and want to borrow more with a CBILS loan, you can still apply. If you’re then successful, you will need to settle your existing BBLS loan. This is because you can’t hold both loans at any one time. You’ll need to ensure that you request enough funds to cover the cost of repaying your Bounce Back loan, in addition to the extra funds you want to request through CBILS.

To learn more about BBLS and the features it offers, we’ve got another article that goes into more depth here.

What happens if I miss the deadline?

If you miss the deadline, you won’t be able to apply for a CBILS loan. The deadline to apply for the Bounce Back Loan Scheme (BBLS) has also been extended to 30th November 2020. The Government is working to provide a new government guarantee scheme in January 2021, but details of this haven’t been released. Please check gov.uk for the most up-to-date information.

It’s important to remember that when taking a loan your business is liable for the full loan amount. The CBIL and BBL schemes provide a guarantee to the lender, not to the business.

The Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS) are 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. The provision of CBILS or BBLS should not be construed as an endorsement or warranty of Funding Circle by the British Business Bank, or the government of the United Kingdom. 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 BBLS and the list of participating CBILS and BBLS lenders can be found on the British Business Bank website.

All information is correct at time of publishing. While we want to help as much as we can, the information and documents found here are provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here.If you have any questions, please speak to your professional adviser or seek independent legal advice.

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