Coronavirus Business Interruption Loan Scheme
On 17 December 2020, the government announced that the final deadline for Coronavirus Business Interruption Scheme (CBILS) applications would be on 31 March 2021, which means we’re no longer able to offer new loans.
If you’re an existing customer and your business is in need of financial support, we may have another product or service that might be suitable.
Please contact us using the following details:
For Investec Bank plc customers and all other enquiries: please contact your relationship manager or our Coverage team [email protected]
Investec is an accredited lender for the Coronavirus Business Interruption Loan Scheme (CBILS).
What is CBILS?
CBILS is designed to support the continued provision of finance to small and medium-sized enterprises (SMEs) in the UK during the Covid-19 outbreak. The scheme, managed by the British Business Bank (BBB) and delivered through more than 60 accredited lenders, provides the lender with a government-backed guarantee, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’. Note: The borrower remains fully liable for the debt.
CBILS 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 cash flow.
The scheme supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities.
Under CBILS, the first 12 months of interest on the facility and any arrangement fees will be paid by the UK government as a Business Interruption Payment. This means that businesses will benefit from no upfront costs and lower initial repayments.
Please note: This scheme is just one of a number of measures announced by the UK government to support businesses through the disruption caused by Covid-19. Details of all the measures can be found here.
Key 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 six 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.
What types and size of finance can Investec offer under CBILS?
- term loans from £50,001 to £5 million for between 12 months and six years
- asset finance facilities of up to £5 million
- invoice finance from £100,000 to £5 million
- revolving credit facilities from £50,001 to £5 million
Is my business eligible to apply?
- Be a UK-based sole trader, partnership or company with a (Group) annual turnover of up to £45m.
- Self-certify that you have been adversely impacted by the coronavirus (Covid-19).
- Generate more than 50% of your (Group) turnover from trading activity in the UK.
- Require the financing for working capital, growth or investment.
- Use the financing to support business activity within the UK.
Unfortunately, you won't be eligible if your company:
- Is a bank, building society, insurance company, public sector organisation, or state-funded primary or secondary school or charity.
- Applied or has been accepted for a Bounce Back Loan Scheme (BBLS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) or the Bank of England's Covid Corporate Financing Facility (CCFF), unless the funds you borrow will refinance the whole of the BBLS, CLBILS or CCFF financing.
- Is in arrears with any lender (including having been served a winding-up petition or a statutory demand), or in an insolvency process (bankruptcy, CVA, IVA, administration, liquidation, etc.).
If you're applying to borrow £30,000 or more, your company also won't be eligible if it is classed as an "undertaking in difficulty".
- As with any other commercial transaction, the borrower is always responsible for the repayment of the full value of any facility supported by CBILS.
- The government guarantee is to the lender, not the borrower.
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.
Our UK regulators
Investec Bank plc (Reg. no. 489604) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered at 30 Gresham Street, London EC2V 7QP.
Investec Asset Finance plc (Reg. no 2179313) is authorised and regulated by the Financial Conduct Authority for credit-related regulated activities (including hiring). Registered office at Reading International Business Park, Reading, RG2 6AA.