Coronavirus Business Interruption Scheme (CBILS)

We’re proud to be supporting UK businesses through these uncertain times and are delighted to have been approved for accreditation by the British Business Bank as a lender under the Coronavirus Business Interruption Loan Scheme.

Working with BBB

The Coronavirus Business Interruption Loan Scheme (CBILS), delivered through British Business Bank accredited lenders and partners, is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak. As an accredited provider, you are able to access the CBILS loans with Ortus Secured Finance.  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 and at Ortus we will be providing secured term loans. Please note that for term loans, the minimum amount a lender can offer under CBILS is £50,001.

SCHEME FEATURES

• Up to £5m facility: The maximum value of a facility provided under the scheme is £5m, available on repayment terms of up to 3 years.

No guarantee fee for SMEs to access the scheme: No fee for smaller businesses.

• Interest and fees paid by Government for 12 months: The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.

• Finance terms: Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.

• Guarantee to the lender: The scheme provides the lender with a government-backed, guarantee against the outstanding facility balance. The borrower always remains 100% liable for the debt.

• Principal Private Residence (PPR): A borrowers/guarantors PPR cannot be taken as security to support a Personal Guarantee or as security for a CBILS backed facility.

• The borrower always remains 100% liable for the debt.

Additional notes on security

No personal guarantees for facilities under £250k: Personal guarantees of any form cannot be taken under the scheme for any facilities below £250k.

• Personal guarantees for facilities above £250k: Personal guarantees may still be required, at a lender’s discretion, but recoveries under these are capped at a maximum of 20% of the outstanding balance of the CBILS facility after the proceeds of business assets have been applied. A Principal Private Residence (PPR) cannot be taken as security to support a personal guarantee or as security for a CBIL backed facility.

• Security: For all facilities, including those over £250,000, CBILS can now support lending to smaller businesses even where a lender considers there to be sufficient security, making more smaller businesses eligible to receive the business interruption payment.

Frequently Asked Questions

What is CBILS?

The Coronavirus Business Interruption Loan Scheme (CBILS), delivered through British Business Bank accredited lenders and partners, 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. Please note that at Ortus we will be providing term loan facilities only.

What type of facility can Ortus offer through CBILS?

At Ortus we will be offering secured term loan facilities, from £250,000, for periods of up to 3 years

What are the eligibility criteria?

Smaller businesses from all sectors can apply for the full amount of the facility.  To be eligible for a facility under CBILS,  a smaller business must meet the following:

  • The borrower must have been impacted by Coronavirus / Covid-19
  • They must have a viable business proposition
  • Security should be provided in line with the lender’s usual policy
  • The borrower must be an SME and generate 50% or more of its turnover from trading activity
  • The SME must trade in the UK and the facility must support commercial activity in the UK
  • The borrower must not have been classed as an ‘undertaking in difficulty’ as at 31st December 2019
  • The borrower or its group must have turnover of no more than £45m per annum
  • The facility must be used for an eligible purpose and in a permitted sector

How does the government help with CBILS?

  • The government will provide a Business Interruption Payment (“BIP”) covering all lender levied fees on the transaction;
  • They will provide a guarantee to the lender in respect of the facility, covering up to 80% of the balance outstanding post realisation of security. The Borrower is always reliable for the full outstanding debt.
  • CONTACT

    Contact our CBILS representative, Richard King, on tel: 07388 993 985

  • ELIGIBILITY

    We approve initial eligibility

  • RECEIVE AND LEGAL PROCESS

    Your case proceeds to full underwriting and solicitors complete due diligence

  • COMPLETE

    The case completes: funds released

  • FINISH

    You plan your exit / We assist with any challenges

APPLY NOW

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). British Business Bank plc is wholly owned by HM Government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). Full details on CBILS and the list of participating CBILS lenders can be found on the British Business Bank website at: www.british-business-bank.co.uk/CBILS 

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