Accounting | The Coronavirus Business Interruption Loan Scheme for SMEs (CBIL)

Good news for businesses which were planning to apply for CBIL but were put off by lenders insisting on directors’ or business owners’ personal guarantees.

There are a few highlights for small businesses only.

For full details please go to the British Business Bank website here.

For loans up to £250,000 lenders will not take personal guarantees.

The maximum loan period is 6 years (72 months).

The payment of capital and interest starts from month 13, i.e. in the first 12 months, you won’t need to pay anything.

Some lenders indicated that they will not charge arrangement fees or early repayment charges.

Businesses are more likely to receive CIBLs through their banks where they have a history of transactions.

BUT, businesses must show that they are viable businesses if it were not for the current pandemic.

If you need further advice, please contact us.

The information provided in this article is not intended to constitute legal, accountancy or financial advice. You should take independent legal, accountancy or financial advice before relying on the information in this article or before decisions are made or before you embark on any course of action.

Irina Inayat

Penn Accounts

0207 183 6623