How CBIL scheme works
The CBIL scheme is now live, so we’re urging our community to ensure their businesses are registered on Swoop and ready to gain access.
Launched by the Government in response to the COVID-19 pandemic, the scheme allows companies with a turnover up to £45m per annum to borrow up to £5m with the first 12 months interest free.
The Government will back 80% of any losses, allowing companies affected by the emergency to access extra liquidity in a time of need. The scheme supports loans as well as other financial facilities such as overdrafts, depending on the provider. Any ‘guarantees’ are between the Government and the lender and NOT the lender and small business. These are repayable loans.
The loans will be delivered by the British Business Bank through 40+ accredited lenders. Each lender has different requirements, so by registering with Swoop will provide you with the best possible opportunity for success.
The structure has already been tested as a quick and robust way of getting money to small businesses. Processing times for the funds will vary depending on the lender, but it is apparent that loans of up to £250k could be processed within days, or even hours, as they won’t require any security. This is a crucial point.
Who is eligible for CBIL?
In order to be eligible for support via the Coronavirus Business Interruption Loan Scheme, applicants must:
- Be unable to meet a lender’s normal lending requirements for a fully commercial loan or other facility – but would be considered viable in the longer-term
- NOT operate in one of the sectors that are not eligible
- We understand that providers are going to look for businesses that had healthy operations and cash flows before the emergency, and have been disrupted by the impact of COVID-19.
- be able to confirm that they have not received de minimis State aid beyond €200,000 equivalent over the current and previous two fiscal years
Register with Swoop. We’ll ensure you have all the required information together in one place – by integrating your bank account and financial software this should only take minutes. We’ll then match you with the most appropriate funder for your needs.
If you have any queries please call our Swoop coronavirus funding hotline on 0203 868 0364 (8am – 6pm, 7 days a week).
Keep up to date with changing circumstances and financial advice for your business.