Coronavirus Business Interruption Loan Scheme or “CBILS”

Managed by the British Business Bank, the Coronavirus Business Interruption Loan Scheme (CBILS), delivered by British Business Bank Bank accredited lenders and partners, like Shawbrook, is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak. The scheme enables lenders to provide facilities of up to £5m to smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow. It supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities. At Shawbrook, we have been accredited to provide term loans through the Scheme.

We can offer a term loan of between £250,000 and £5m over a period of 1-3 years, with a repayment profile designed to minimise immediate cash strain, to existing Shawbrook business customers who meet the eligibility criteria of the Scheme. Funds must be deployed to support trading primarily in the UK.

Any applicant for a Shawbrook Bank CBILS loan must meet the following criteria:

• Already a Shawbrook business customer with existing debt facilities with us
• UK-based Limited company with group turnover of less than £45m. At least 50% of turnover must be generated from trading activity
• Experiencing lost or deferred revenues as a direct result of Covid-19 and in good financial health before the outbreak
• The business and any member within its Group may not have applied for a loan under (or incurred any financial indebtedness under) the Bounce Back Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme or the Covid Corporate Financing Facility unless such financial indebtedness will be refinanced in full by the CBILS facility

Businesses from any sector can apply, except the following: Banks, insurers and reinsurers (but not insurance brokers); public-sector bodies; and state-funded primary and secondary schools.

The term loan is underwritten and provided by Shawbrook and will incur interest and a documentation fee. The documentation fee and first 12 months’ interest can be paid by the Government by way of a Business Interruption Payment (‘BIP’) made to us on your behalf.  Further information and terms will be provided in a specific BIP offer letter.

The Government has introduced a ‘Business Interruption Payment’ (BIP) option, whereby the first 12 months of interest on the loan and some upfront fees are paid by the Government. This option is available on request and details are supplied on application for the term loan.

The Government also provides Shawbrook with a guarantee to protect 80% of the outstanding loan balance, which incurs a fee payable by Shawbrook. As with any other commercial transaction the borrower is always responsible for repaying 100% of the value of any facility supported by CBILS.