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CBILS Extension – everything you need to know

Borrower Coronavirus Updates

CBILS Extension – everything you need to know

Updated: 7 October 2020

The Coronavirus Business Interruption Loan Scheme (CBILS) was set to end on the 30th September. However, the Government has now announced that the scheme will be extended, which is great news for small businesses that have yet to take advantage of the scheme. Here, we take a look at what you need to know about the CBILS extension.

When is the new CBILS deadline?

The Government’s CBILS loan scheme has now been extended to 30th November 2020. This means you have until this date to start an application for a CBILS loan.

What’s changed?

In addition to the deadline for applications being extended, providers of CBILS loans will have the option to extend their loan terms up to a maximum of 10 years. Otherwise, businesses that apply for the scheme will still receive all the other benefits as those that applied before. For Funding Circle CBILS loans specifically, these include:

  • 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
  • Government covers the upfront fee
  • No early settlement fees
  • Decisions typically within 24 hours
  • No personal guarantee for loans up to £250,000

The eligibility criteria hasn’t changed either. The following criteria still applies for CBILS loans from Funding Circle:

  • 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

How to apply for a CBILS loan

In order to apply for a CBILS loan, you’ll want to ensure you meet the eligibility criteria. Then, simply visit our website to check your eligibility. You’ll receive a decision on your application typically within 24 hours, and the funds will arrive in your account typically within two weeks.

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.

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.

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). Full details on CBILS eligibility criteria and the list of participating CBILS lenders can be found on the British Business Bank website.

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