Coronavirus Business Interruption Loan Scheme
Tower Leasing Ltd. Accredited To Coronavirus Business Interruption Loan Scheme
What is the Coronavirus Business Interruption Loan Scheme (CBILS)?
The Coronavirus Business Interruption Loan Scheme (CBILS), delivered through 60+ 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.
Tower Leasing is accredited for CBILS via the British Business Bank and able to support with Asset Finance for advances between £5k and £100k.
The CBILS scheme provides Tower Leasing and other accredited lenders with a government-backed guarantee potentially enabling Tower Leasing to provide Asset Finance facilities to SMEs. In the absence of the CBILS scheme, those SMEs would ordinarily have difficulty raising such finance due to the impacts of COVID-19 as they would likely fall outside of the Tower Leasing and other asset finance funders’ normal appetite.
Please note: This scheme is just one of a number of measures announced by Government and full details of the temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19 can be found here.
What are the key features of CBILS?
Key features of CBILS include:
- Up to £5m facility available on repayment terms of up to six years.
- No guarantee fee for SMEs to access the scheme
- Interest and fees paid by Government for 12 months, so there are no upfront costs and lower initial repayments.
- 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.
- The scheme provides the lender with a government backed, guarantee against the outstanding facility balance.
- No personal guarantees for facilities under £250k
- 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.
- The borrower always remains 100% liable for the debt.
- Where there is sufficient security available, it is likely that the lender will take such security in support of a CBILS facility.
What are the key features of Tower Leasing’s CBILS Scheme?
Tower Leasing is supporting CBILS through the provision of funding for businesses under the following parameters:
- Products Covered: Equipment Finance
- Advances between £5k to £100k
- Finance Term: between 12 and 60 months
- Customers: UK SMEs meeting the eligibility criteria (New and Existing Tower Leasing customers only)
- No guarantee fee for SMEs to access the scheme – No fee for smaller businesses
For Other Products: Visit the British Business Bank
Please note: As with any other commercial transaction, the borrower is always responsible for repayment of the full value of any facility supported by CBILS.
Is CBILS Available To Me?
There are some “criteria” to meet to be considered for CBILS for Tower Leasing and these are:
- You are a UK business that has been seriously affected by Coronavirus (if you are unsure, just ask Tower and we will let you know)
- Your turnover is no more than £45 million
- Your business has been trading for 3 years or more
- That 50% of your turnover has come from trading activity
- This loan will be used for business purposes and primarily for trading in the UK
Full details on CBILS eligibility criteria and the list of participating CBILS lenders can be found on the British Business Bank website and contains all the key details:
1. FAQs for SMEs: Download SME-focused CBILS FAQs
2. Eligibility Checker: Download Quick Eligibility Checker
3. CBILS infographic: Download CBILS Infographic
How Do I Apply For CBILS?
There is a lot of information and we encourage you to please take the time to review the eligibility criteria. If you have any queries relating to the scheme then please contact Tower Leasing on 01753 837 050, we can take you through the steps to apply.
To help make this easy, can you let us know and have the following:
- How much do you need?
- The number of employees your business has
- Has your business taken on more than £25,000 of debt in the last 12 months? If you have,
- How much was this and what was it for?
- Your business bank statements for the last 12 months (and can you let us know your overdraft limit)
- The latest 2 years of your full business – unabbreviated – accounts
- All business director’s information: Full name, date of birth and last 3 years home address(s)
- All shareholders with 20% or more shareholding information: Full name, date of birth and last 3 years home address(s)
Please note other conditions and exclusions may apply and we would request you check the links for further details.
The Coronavirus Business Interruption Loan programme 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. For full details visit www.british-business-bank.co.uk/CBILS