Coronavirus Business Interruption Loan Scheme (CBILS)

The Coronavirus Business Interruption Loan Scheme (CBILS) is a government initiative to support small and medium-sized businesses who have been impacted by Coronavirus. The government provides lenders like Ednites Credit Union, with a guarantee for 80% of qualifying loans. 

Borrow from £50,001 up to £5m, with loan terms up to 6 years and no interest payments for 12 months. 

CBILS is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA.

Visit: british-business-bank.co.uk  

You may be eligible to apply if:
You're a UK-based business
Your annual group turnover is no more than £45m
You can certify that your business has been impacted by coronavirus
You can show evidence of affordability for lending prior to coronavirus

You won't be eligible to apply if:
You’re a bank, insurer, reinsurer (but not insurance brokers), public sector body, state funded primary or secondary school. 
Your business is subject to collections or collective insolvency proceedings
Your business already has (or is in the process of applying for) a Bounce Back Loan unless that loan is repaid as part of your CBILS application.

Interest on your CBILS loan will be a Fixed or Variable interest rate.
The interest rate applied to your CBILS loan will be detailed in your loan agreement or advice letter if any changes have been applied.

Interest is calculated daily and applied as detailed in your loan agreement.

Interest during the first 12 months will be paid by the government. Remember that you are responsible for paying back the whole loan, including interest after the first 12 month period. 

Upon drawdown, an automatic 12 month repayment holiday will be applied. Your repayments are due to start 1 month after the repayment holiday ends (you can make extra repayments or repay the loan early without penalty, and doing so could also help save you money on your interest rate).

You must repay the loan and interest as detailed in your loan agreement so the loan is fully repaid by the final repayment date in your loan agreement.

You can make extra repayments or repay the loan early without penalty, and doing so could also help save you money on your interest payments.

You'll need a current or loan servicing account with us for your repayments.

Payments will be required to cover your monthly repayments and interest as advised.

The BIP is a payment by the Government to cover the first 12 months of interest payments and any lender-levied charges associated with your CBILS loan.

When you apply for the CBILS loan you agree that the Government may pay these BIP amounts directly to us. The assistance provided through the BIP is made under the Temporary Framework for State Aid, which is deemed to benefit you as it has provided you with a payment to reduce your financing costs under your CBILS loan which would not otherwise have been possible.

We will provide BIP statements and it is your responsibility to ensure that you do not breach state aid limits.