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COVID-19: The Coronavirus Business Interruption Loan Scheme

Who qualifies and who's exempt?

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Posted by Roger Eddowes on 08/04/2020 @ 8:00AM

Following Chancellor Rishi Sunak's announcement of the £330bn Coronavirus Business Interruption Loan Scheme (CBILS), businesses have been confused about how they can gain access to these loans ...

There are 40 Coronavirus Business Interruption Loan Scheme accredited lenders!

There are 40 Coronavirus Business Interruption Loan Scheme accredited lenders!

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After all, Business secretary Alok Sharma (he's a qualified accountant by the way!) spoke last week at one of the Downing Street COVID-19 briefings saying, "It would be completely unacceptable if any banks were unfairly refusing funds to good businesses in financial difficulty.

Just as the taxpayer stepped in to help the banks in 2008, we will do everything we can to help the banks repay that favour and support the businesses and people of the UK in their time of need."

So, who is eligible? According to the British Business Bank eligibility checklist, to qualify for CBILS businesses:

  • Your application must be for business purposes and the business must have been adversely impacted by the Coronavirus (COVID-19)

  • You must be a UK-based SME with an annual turnover of up to £45m

  • Your business must generate more than 50% of its turnover from trading activity

  • Your CBILS-backed facility will be used to support primarily trading in the UK

  • You wish to borrow up to a maximum of £5m. (Finance terms are to six years for term loans and asset finance. For overdrafts and invoice finance facilities, terms will be up to three years)

The following are exempt:

  • Banks and building societies

  • Insurers and reinsurers (but not insurance brokers)

  • Public-sector organisations, including state-funded primary and secondary schools

  • Employer, professional, religious or political membership organisations

  • Trade unions

There has been a lot of controversy with the banks asking for personal guarantees so it has now been confirmed that borrowers do not have to explore other commercial sources of finance first before seeking a business interruption loan.

"Personal guarantees have been waived for loans under £250,000!"

A lender can still turn down your application, so under these circumstances, I suggest you try another lender (there are 40 Coronavirus Business Interruption Loan Scheme accredited lenders ) or contact us for an introduction to a bank broker.

Until next time ...

Business Godparent


Would you like to know more?

If you'd like to discover more about the Coronavirus Business Interruption Loan Scheme, call me on 01908 774320, leave a comment below or click here to ping over an email and let's see how I can help you.

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About Roger Eddowes ...


Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.