Coronavirus Business Interruption Loan Scheme

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.

CBILS is designed to support UK based small and medium-sized businesses with a turnover up to £45 million who have a viable business proposition and are struggling with the challenges presented by coronavirus (COVID-19).

CBILS provides lenders with a government-backed guarantee of 80% on loans up to £5 million.

How much can I apply for with CBILS?

You can currently apply for a loan of between £50,001 and £5 million from us.

For loans up to £50,000, please take a look at the Bounce Back Loan scheme.

Is the CBIL Scheme a loan or a grant?

CBILS is not a grant. It provides a guarantee to us so that we can provide finance, but businesses still have to repay the loan in full. The borrower is responsible for repayment of 100% of the debt and not just the 20% outside the coverage of the government's guarantee.

As the borrower is liable in full for the debt, we may request additional security.

• Security may be required, subject to application
• We will not take personal guarantees as security for any CBILS loans 
• The borrower’s primary residential property cannot be taken as security under the scheme.

The government has also announced a number of other support measures that businesses may be eligible for. You can find more information on these measures are available on Gov.uk.

Which products are covered under CBILS?

We're offering CBILS term loan facilities.

What if I want to borrow less than £50,001?

The government’s Bounce Back Loan scheme offers loans of between £2,000 and £50,000 to UK businesses affected by coronavirus.

How long will CBILs remain on sale?

CBILS will remain on sale until the end of September 2020. This period may be extended by the Government.  The Government has indicated that there is no maximum cap set for the amount of total lending to be supported through the CBILs scheme. Therefore, if you do not need finance in the short term there is no immediate need to approach us.

How quickly can businesses get the money?

It will depend on the individual business’ circumstance and how much funding they require. This is a new scheme and a number of checks need to be implemented to satisfy the scheme’s eligibility criteria. We're working hard to check applications and get funding to people, while looking at a number of ways we can introduce additional technology to help speed up the process.

What do I do if my CBILS application is unsuccessful?

If your application isn't successful, we have a range of other flexible borrowing solutions that may help.

Taking out a new loan

If you need £50,000 or less, please take a look at the new Bounce Back Loan scheme announced by the government on 27 April. The scheme offers loans of £2,000 to £50,000 for UK businesses that have been affected by coronavirus.

If you already have a loan with us

If you originally borrowed less than £25,000, you might be eligible for a three-month repayment holiday. If we approve a payment holiday application

• You won’t need to make a payment on your next three monthly payment dates
• We’ll extend the term of your loan by three months, and add your three deferred payments to the end of your term
• We’ll charge interest as normal on your loan during this time, at the rate stated in your loan agreement – you’ll need to pay any interest you’ve accrued by the end of your extended term
• The total amount you’ll have to repay will be more with a repayment holiday than without one. You can pay the accrued interest back whenever you like – you don’t have to wait until the end of your loan
• We’ll continue to give information about your account to credit reference agencies
• The repayment holiday is subject to eligibility criteria, terms and conditions. All other terms and conditions of your loan will stay the same

If you originally borrowed more than £25,000, you might be eligible for a capital repayment holiday of up to 12 months. We can usually agree that within 48 hours after you apply if

• Your loan term stays the same (which means your repayments would increase after the holiday)
• You’ve been a Barclays client for at least a year
• You’re not in the commercial property sector
• Alternatively, you can refinance your loan to extend the term and reduce the payments, with the option to include a repayment holiday.

Next steps

To find out more or apply, please fill in this form and we’ll call you. If you have a payment due in the next ten days, your holiday will start from the month after you apply.

There are also a number of government support measures for businesses, such as grants, that you could be eligible for – find out more about these at gov.uk. You can learn more about the government’s finance options, and see if there’s a provider who could give the finance you need.

You can also appeal against our lending decision.

Do I need to give security for a CBILS loan?

Security may be required, subject to application. We will not take personal guarantees as security for any CBILS loans. The borrower’s primary residential property cannot be taken as security under the scheme.

What kind of interest rates will businesses need to pay?  

If your business is eligible for a ‘Business Interruption Payment’, then the UK Government will cover the first 12 months interest applicable to your loan together with certain fees, including the arrangement fee. The ‘Business Interruption Payment’ is provided by the UK Government to support eligible customers to help businesses manage in these challenging circumstances. After the initial 12 months, the interest rate on your loan that has been agreed and communicated to you at the outset will start to apply.

Can I refinance a loan into CBILS?

Yes, under certain restricted circumstances. If you have been severely impacted by COVID-19 and your current loan provides inadequate working capital, you may be able to refinance into the scheme. You will have to go through the normal application process, stating you wish to refinance, and meet the full eligibility criteria. Please speak to your Barclays Business Manager or call our coronavirus helpline for more information. Full details are available on our dedicated CBILS product page.

What is the impact if my business employs over 250 people?

If this is the case, the way we pay the British Business Bank (BBB) is different to the process for smaller businesses. As a result, we'll need visibility and we'll ask you to self-certify that you employ over 250 people. We're still reviewing whether this includes seasonal workers. Please check back as we'll regularly update our site.

Can businesses from all sectors apply?

Smaller businesses from any sector² can apply for the full amount of the facility.

My business was under pressure before the COVID-19 crisis – am I still eligible for CBILS?

You can still be considered for a loan under the scheme, though these are subject to business viability and you must meet the full eligibility criteria to be approved.

Business customers can apply for the Coronavirus Business Interruption Loan by contacting their Relationship Manager. If they don’t have a dedicated point of contact, they can call our helpline on 0800 1971 086³.

What documentation will you need to provide?

The business will need to provide documentation confirming the financial status of the business, such as audited financial accounts.

Why is CBILs not available online or on the Mobile app?

Unfortunately, due to the urgency and complexity of launching the new CBILS product is not currently available online or via mobile banking.

We have a dedicated COVID-19 helpline in place - Call 0800 197 1086³ between 8am and 8pm Monday to Friday (except bank holidays).

We know that many people have questions about how the coronavirus situation will affect them. We’d be really grateful, for now, if you would only call us if you’re worried about an immediate effect on your finances. That way, we can focus on helping those in the most vulnerable situations. You’ll find our latest updates and tips on how to manage your money below.

Thanks for bearing with us at this difficult time – and if you do need to call, remember that it will take longer than usual to get through.  If you have a query on the CBILS scheme and have not found the information you are looking for you can find more details from the British Business Bank.

What do I do if my CBILS application is unsuccessful?

If your application isn't successful, we have a range of other flexible borrowing solutions that may help.

Taking out a new loan

If you need £50,000 or less, please take a look at the new Bounce Back Loan scheme announced by the government on 27 April. The scheme offers loans of £2,000 to £50,000 for UK businesses that have been affected by coronavirus.

If you already have a loan with us

If you originally borrowed less than £25,000, you might be eligible for a three-month repayment holiday. If we approve a payment holiday application

• You won’t need to make a payment on your next three monthly payment dates
• We’ll extend the term of your loan by three months, and add your three deferred payments to the end of your term
• We’ll charge interest as normal on your loan during this time, at the rate stated in your loan agreement – you’ll need to pay any interest you’ve accrued by the end of your extended term
• The total amount you’ll have to repay will be more with a repayment holiday than without one. You can pay the accrued interest back whenever you like – you don’t have to wait until the end of your loan
• We’ll continue to give information about your account to credit reference agencies
• The repayment holiday is subject to eligibility criteria, terms and conditions. All other terms and conditions of your loan will stay the same

If you originally borrowed more than £25,000, you might be eligible for a capital repayment holiday of up to 12 months. We can usually agree that within 48 hours after you apply if

• Your loan term stays the same (which means your repayments would increase after the holiday)
• You’ve been a Barclays client for at least a year
• You’re not in the commercial property sector
• Alternatively, you can refinance your loan to extend the term and reduce the payments, with the option to include a repayment holiday.

Next steps

To find out more or apply, please fill in this form and we’ll call you. If you have a payment due in the next ten days, your holiday will start from the month after you apply.

There are also a number of government support measures for businesses, such as grants, that you could be eligible for – find out more about these at gov.uk. You can learn more about the government’s finance options, and see if there’s a provider who could give the finance you need.

You can also appeal against our lending decision.

The CBILS isn’t available to businesses borrowing £50,001 or more if the business was an ‘Undertaking in Difficulty’ as of 31 December 2019. ’Undertaking in difficulty’ is defined in Article 2 (18) of the Commission Regulation (EU) no. 651/2014 of 17 June 2014. When you apply, we’ll ask you to confirm that your business wasn’t an undertaking in difficulty as of 31 December 2019.

(a) In the case of a limited liability company (other than an SME that has been in existence for less than three years or, for the purposes of eligibility for risk finance aid, an SME within 7 years from its first commercial sale that qualifies for risk finance investments following due diligence by the selected financial intermediary), where more than half of its subscribed share capital has disappeared as a result of accumulated losses. This is the case when deduction of accumulated losses from reserves (and all other elements generally considered as part of the own funds of the company) leads to a negative cumulative amount that exceeds half of the subscribed share capital. For the purposes of this provision, ‘limited liability company’ refers in particular to the types of company mentioned in Annex I of Directive 2013/34/EU ( 1 ) and ‘share capital’ includes, where relevant, any share premium. 

(b) In the case of a company where at least some members have unlimited liability for the debt of the company (other than an SME that has been in existence for less than three years or, for the purposes of eligibility for risk finance aid, an SME within 7 years from its first commercial sale that qualifies for risk finance investments following due diligence by the selected financial intermediary), where more than half of its capital as shown in the company accounts has disappeared as a result of accumulated losses. For the purposes of this provision, ‘a company where at least some members have unlimited liability for the debt of the company’ refers in particular to the types of company mentioned in Annex II of Directive 2013/34/EU. 

(c) Where the undertaking is subject to collective insolvency proceedings or fulfils the criteria under its domestic law for being placed in collective insolvency proceedings at the request of its creditors. 

(d) Where the undertaking has received rescue aid and has not yet reimbursed the loan or terminated the guarantee, or has received restructuring aid and is still subject to a restructuring plan. 

(e) In the case of an undertaking that is not an SME, where, for the past two years: 

(1) the undertaking's book debt to equity ratio has been greater than 7,5 and 

(2) the undertaking's EBITDA interest coverage ratio has been below 1,0.

For smaller businesses

Following EU changes in State Aid Law relating to the ‘Undertaking in Difficulty’ test for businesses, the British Business Bank has amended its Coronavirus Business Interruption Loan Scheme.

These changes mean that smaller businesses with fewer than 50 employees and less than £9,000,000 in annual turnover and/or annual balance sheet will not be considered undertakings in difficulty unless they are (a) subject to collective insolvency procedure under national law, or (b) in receipt of rescue aid (which has not been repaid) or restructuring aid (and are still subject to a restructuring plan).

Smaller businesses with more than 50 employees or more than £9,000,000 in annual turnover and/or annual balance sheet will still be subject to the ‘Undertaking in Difficulty’ test as defined by the European Union.

These changes will apply from 30 July 2020.

Following EU changes in State Aid Law relating to the ‘Undertaking in Difficulty’ test for businesses, the British Business Bank has amended its Coronavirus Business Interruption Loan Scheme.

These changes mean that smaller businesses with fewer than 50 employees and less than £9,000,000 in annual turnover and/or annual balance sheet will not be considered undertakings in difficulty unless they are (a) subject to collective insolvency procedure under national law, or (b) in receipt of rescue aid (which has not been repaid) or restructuring aid (and are still subject to a restructuring plan).

Smaller businesses with more than 50 employees or more than £9,000,000 in annual turnover and/or annual balance sheet will still be subject to the ‘Undertaking in Difficulty’ test as defined by the European Union.

These changes will apply from 30 July 2020 and mean lenders may now be able to offer CBILs to businesses which had previously been unable to access them. If your business has been affected by coronavirus and you believe it’s eligible for a CBIL, please get in touch with your usual point of contact or start your application online. Our Business Banking colleagues will be happy to help you.

If you apply for a CBIL, you’ll need to have a credit assessment. CBILs are available to medium-sized businesses with a turnover of up to £45 million, who have a viable business proposition.

For more information, take a look at the British Business Bank’s website.