We’re experiencing an unprecedented number of calls at the moment, which is having a big impact on our call waiting times. If you need to talk to us about a Coronavirus Business Interruption Loan, new lending or a capital repayment holiday, just fill in your details and we’ll call you back.
Coronavirus Business Interruption Loan Scheme
Supporting your business during coronavirus
Gain the financial backing you need to help your business cope with the Covid-19 outbreak, through this Government-backed scheme1.
Key features and benefits
This scheme is designed to support UK based small and medium-sized businesses, with a turnover of up to £45 million, with a viable business proposition but are struggling with the challenges of the Covid-19 outbreak.
Further information can also be found on the British Business Bank and Bank of England websites.
Loans up to £5million
You can apply for a loan between £25,001 and £5,000,000
Flexible terms available
Spread repayments of your loan from 1 to 6 years
Interest free period
In order to support client cash flow issues, the arrangement fees and the first 12 months interest will be paid by the UK government as a “Business Interruption Payment”
Is your business eligible?
The eligibility criteria specified by the British Business Bank states that CBILS is open to businesses that:
- Are a UK based business impacted by coronavirus (Covid-19)
- Have a borrowing proposal which, were it not for the Covid-19 pandemic, would be considered viable and for which the provision of finance will enable trading out of any short-to-medium term difficulty
- Operate in the UK
- Have a group turnover of no more than £45 million
- Can afford to repay the borrowing over a period up to 6 years
- Smaller businesses from any sector2 can apply for the full amount of the facility.
Other details
- If we can offer finance on normal commercial terms without the need to make use of the scheme, we are obliged to do so
- Government guarantee of 80%, subject to annual claim limit
- Subject to application, security may be requested
- Flexible repayment structures and the option to take capital repayment holidays so you can match payments to your income (subject to prior approval)
Important
You'll be responsible for repayment of 100% of the CBIL facility, not just the 20% outside the coverage of the government's guarantee. Where defaults occur, we follow our standard commercial recovery procedures, including the realisation of security, before we make a claim against the government's guarantee for any shortfall. Whilst loans are available to most business sectors, some restrictions do apply
The Coronavirus Interruption Loan 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.
Check if your business is eligible
Please answer these six questions.
Want to find out more?
Call us
Call our dedicated helpline on 0800 1971 0863 between 8am and 8pm Monday to Friday.
COVID-19 Support for Businesses
Additional information about this and other products can also be found on the UK Government website.
Frequently Asked Questions
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The Coronavirus Business Interruption Loan scheme 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.
The scheme provides lenders with a government-backed guarantee of 80 percent on facilities of up to £5 million where Barclays and other lenders would not otherwise be able to provide finance to a customer. If however we can offer finance on normal commercial terms without the need to make use of the CBILS scheme, then we are obliged to do so.
What size loan can I apply for via the scheme?
The minimum loan limit threshold is above £25k and the maximum loan limit available via this scheme is £5 million.
Is the CBIL Scheme a loan or a grant?
The scheme is not a grant. The scheme provides a guarantee to a lender i.e. the bank to allow them to provide finance, but businesses will still have to repay this loan or facility in full. Businesses are responsible for repayment of 100% of the debt, not just the 20% outside the coverage of the government's guarantee.
As businesses are liable in full for the debt, lenders may ask for personal guarantees and security over business assets to support the borrowing facilities.
The government has announced a number of support measures for businesses, such as grants, which businesses may be eligible for. More information on these measures are available on Gov.uk.
Which products are covered under CBILS?
We're offering CBILS term loan facilities.
Why aren't we providing CBILS for loans under £25k?
Whilst the introduction of CBILS allows us to support more businesses through this crisis, if we can offer finance on normal commercial terms without the need to make use of the scheme, we're obliged by the Government to do this. We currently offer fee-free loans under £25k as part of our standard proposition. These are subject to business viability.
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.
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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, there are a number of options available to you.
We offer a number of other flexible borrowing solutions that may help.
If you need less than £25,000, and already have a pre-assessed lending limit, once your application is accepted, the money is usually in your account within 24 hours, however the impact of coronavirus means applications are taking longer to process than usual. We’re sorry about this and doing all we can to support you during this time.
If you need more than £25,000, we have overdrafts and loans available, you can speak to your Business Manager or speak to someone over the phone.
If you already have existing loan with us:
Where the loan is over £25,000, capital repayment holidays are available for a maximum of 12 months agreed typically within 24 to 48 hours if the following terms are satisfied (Subject to criteria):
- Term is unchanged (NB future payment would increase once the capital repayment holiday expires)
- Existing Barclays client (minimum of 12 months)
- Available across all industry sectors (excluding Commercial Real Estate)
Alternatively, you can refinance your loan to extend the term and lower the payments, with the option of an upfront repayment holiday.
There are also a number of government support measures for businesses such as grants which you may be eligible for. Further information on these initiatives is available on gov.uk.
You can see more information on the government designated finance platforms, which can support you in finding a suitable provider that may be able to give the finance you need can be found on our page.
We have an appeals process for you to appeal against your lending decision. You can see an explanation of when you can appeal, how the process works, submit and appeal on our page.
What security do I need to give for a Coronavirus Business Interruption Loan (CBIL)?
To get funds out to businesses as quickly as possible, we won't require a Personal Guarantee from a business if the loan amount is less than £250k.
For any loans above £250k, under the terms of the scheme, we're required to take security that the borrower has available for the amount of the debt, which includes a guarantee from directors/shareholders. This is in line with our standard lending practice. Guarantees won't be taken against the borrower’s primary residential property.
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.
What security do I need to give for a Coronavirus Business Interruption Loan (CBIL) under £250k?
If the loan amount is less than £250k, to get funds out to businesses as quickly as possible we won't require a Personal Guarantee from a business.
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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.
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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 0333 202 74464.
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 and forecasted projections where possible.
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.
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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, there are a number of options available to you.
We offer a number of other flexible borrowing solutions that may help.
If you need less than £25,000, and already have a provisional lending limit, once your application is accepted, the money is usually in your account within 24 hours, however the impact of coronavirus means applications are taking longer to process than usual. We’re sorry about this and doing all we can to support you during this time.
If you need more than £25,000, we have overdrafts and loans available, you can speak to your Business Manager or speak to someone over the phone.
If you already have existing loan with us:
Where the loan is over £25,000, capital repayment holidays are available for a maximum of 12 months agreed typically within 24 to 48 hours if the following terms are satisfied (Subject to criteria):
- Term is unchanged (NB future payment would increase once the capital repayment holiday expires)
- Existing Barclays client (minimum of 12 months)
- Available across all industry sectors (excluding Commercial Real Estate)
Alternatively, you can refinance your loan to extend the term and lower the payments, with the option of an upfront repayment holiday.
There are also a number of government support measures for businesses such as grants which you may be eligible for. Further information on these initiatives is available on gov.uk.
You can see more information on the government designated finance platforms, which can support you in finding a suitable provider that may be able to give the finance you need can be found on our page.
We have an appeals process for you to appeal against your lending decision. You can see an explanation of when you can appeal, how the process works, submit and appeal on our page.
Alternative borrowing options
Business loans
You know your business. We know how to help.
It’s the hardest job you’ve ever done. We know how to help you take the next step, with unsecured business loans of up to £100k5.
Business overdrafts
A flexible overdraft that moves with your business demands
An overdraft could help you deal with seasonal trends and short-term cashflow challenges. Borrow up to £50,000 unsecured – the money could be available to you in days.
Invoice finance
Unlock cash tied up in your outstanding invoices
Seize new opportunities, help grow your business, improve cashflow – these are just some of the ways your business could benefit from invoice finance6.