*UPDATE* Coronavirus Business Interruption Loan Scheme (CBILS)
As we flagged on Wednesday, the similarity with the Enterprise Finance Guarantee (EFG) scheme is now official and “CBILS” will in fact temporarily replace EFG, making it more expedient for the banks.
Many details remain to be worked out, but to be eligible businesses must be:
- Be UK based, with turnover of no more than £41 million per annum
- Operate within an eligible industrial sector (subject to sector exclusions)
- Have a sound borrowing proposal, but insufficient security to meet a lender’s normal requirements
- Be able to confirm that they have not received de minimis State aid beyond €200,000 equivalent over the current and previous two fiscal years.
The scheme will be operated through High Street banks for £1,000 to £1.2m. Government guarantee to cover 80%, with the banks retaining residual 20% risk. This will necessitate a credit process, which will hopefully be as streamlined as possible.