As the situation around COVID-19 continues to evolve, we know that this is challenging many of our customers daily operations. The Creative team are here to work with you and provide you with adequate support, so please feel free to contact us if needed. We have a new email address setup for help specifically with this type of funding which is covid19@creativefs.co.uk

The Coronavirus Business Interruption Loan Scheme (CBILS) is now available through the British Business Bank.

Details of the Coronavirus Business Interruption Loan Scheme (CBILS) announced last week by Chancellor Rishi Sunak to assist SME’s have been released. Within the CBILS loans will be given up to a maximum of £5 million (an improvement from the initial £1.2 million figure). The scheme went live on Monday 23 March, initially running for six months.

What is the Coronavirus Business Interruption Loan Scheme (CBILS)?

The CBILS scheme has been provided as part of a wide range of initiatives to assist small and medium sized businesses in coping with cash flow issues arising from the global crisis of COVID-19. CBILS loans will be replaced on a temporary basis and are therefore generally expected to comply with the existing Enterprise Finance Guarantee Loan Scheme (EFG). Under CBILS, the applicant profits from 80% of the loan sum secured by the government (it is worth remembering that the borrower is 100% responsible for the debt). This plan is intended to facilitate loan processing by approved borrowers so that cash can be made accessible in a timely manner for businesses.

What does the CBILS specifically provide?
  • Up to £5m facility: A facility offered under the scheme will have a maximum value of £5m, available on terms of repayment up to 6 years.

  • 80% Guarantee: The scheme offers a government-backed partial guarantee to the lender against the remaining balance of the loan.

  • No guarantee fee for SMEs to access the scheme: No fee for smaller businesses. Lenders will pay a fee to access the scheme.

  • Interest and fees covered by the Government for a period of 12 months: the Government must make a Business Interruption Provision to cover the first 12 months of interest rates and any lender-paying fees, meaning that smaller companies can benefit from no upfront expenses and lower initial repayments.

  • Finance terms: Finance terms for term loans and asset financing facilities amount to up to six years. The terms will be up to three years for overdrafts and invoice financing facilities.

  • Security: The scheme can, at the discretion of the lender, be used for unsecured loans for facilities of £250,000 or less. For facilities over £250,000, the lender must create a shortage or lack of protection before businesses use CBILS. If the lender can offer finance on normal commercial terms, they will do so without the need to make use of the scheme.

  • The borrower always remains 100% liable for the debt.
Am I eligible to apply?

The UK Business Bank has set out the qualifying requirements for UK small businesses. In order to apply for this funding, your company must:

  • Be UK based, with annual turnover of no more than £45m.

  • Work within an eligible industrial sector (a limited number of industrial sectors will not be qualified for assistance or support).

  • Have a sound financing plan, but inadequate protection to satisfy the usual requirements of a lender- if not for the current pandemic, the lender will find it viable, and for which the lender assumes that the financial arrangement would allow the company to trade out of any short-to medium-term difficulty.

  • Applicants must generate more than 50% of their turnover from trading activity.

At Creative we want to reassure you that we are in constant and close communication with our funders. The team here can effectively work remotely, so any issues or questions you have at this time can be asked and answered as usual. For further support please email covid19@creativefs.co.uk

Access to support for businesses

Full information for businesses on how to access the Chancellor’s various support packages can be found at www.gov.uk.

This includes a package of measures to support businesses including:

  • A Coronavirus Job Retention Scheme
  • Deferring VAT and Income Tax payments
  • Statutory Sick Pay relief package for small and medium sized businesses (SMEs)
  • A 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England
  • Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
  • Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,001 and £51,000
  • The Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank
  • A new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans
  • The HMRC Time To Pay Scheme

Advice and contacts are also given on support for businesses in Scotland, Wales and Northern Ireland, where some measures may differ due to regionally devolved business support.

The importance of staying at home to prevent
coronavirus from spreading.

This information is intended to help you decide what steps you and your organisation may need to take in light of the spread of the covid-19 virus.

With the latest government guidelines in place as of Monday 23rd March 2020, everyone now must stay at home to help stop the spread of coronavirus. This includes people of all ages – even if you do not have any symptoms or other health conditions.

You can only leave your home to;

  • shop for basic necessities – and only when you really need to.
  • do one form of exercise a day – such as a run, walk or cycle, alone or with other people you live with.
  • for any medical need – for example, to visit a pharmacy or deliver essential supplies to a vulnerable person.
  • travel to and from work – but only where this is absolutely necessary.
What’s the best way to prevent the spread of COVID-19?
  • Clean your hands regularly for at least 20 seconds with soap (or soap substitutes) and water, or using an alcohol-based hand sanitiser. This is especially important after public transport has been taken.
  • If soap and water are not available, use an alcohol-based hand sanitiser that contains at least 60 percent alcohol.
  • Cover your cough or sneeze with a tissue, then throw the tissue in a bin. You can download a ’Catch it, Bin it, Kill it’ poster for your workplace from the NHS.
  • Clean and disinfect frequently touched objects and surfaces in the home and work environment. 
  • Do not touch your head, nose, and mouth with unwashed hands.
  • The government’s recommendation is to reduce social contact between people. The advice includes social distance steps that should be taken by all of us, including working from home when possible.

For more information about how you can keep yourself and others safe, please follow the full advice on the NHS & GOV.UK Websites.

Further resources

The aim of this information is to provide an overview of the COVID-19 virus and the support available for businesses and individuals across the UK. For further details and regular updates please use the following resources;

COVID-19 Support for businesses: 

The Coronavirus Business Interruption Loan Scheme (CBILS)

The Coronavirus Business Interruption Loan Scheme (CBILS) – For Businesses and Advisors