Fill in the details to see an instant example of our rates
CBILS: Covid Loans Replaced by ‘Growth Guarantee Scheme’
Applications for CBILS closed in March 2021.
Register your interest for the new Growth Guarantee Scheme instead
-
Closed March 2021
-
New Government-Backed Scheme Announced
-
Apply for the Growth Guarantee Scheme Today
Coronavirus Business Interruption Loan Scheme
CBILS Loan Scheme:
Ended March 2021
Introduced alongside Bounce Back Loans (and the subsequent Recovery Loan Scheme) in response to the COVID-19 outbreak, the Corona Virus Business Interruption Loan Scheme (CBILS) played a vital role in supporting smaller UK businesses during the turbulent times and extensive economic disruption caused by the pandemic. Offering up to £5 million in financial assistance, CBILS provided a lifeline for businesses grappling with revenue loss and disrupted cash flow. Unfortunately, CBILS closed for new applications on March 31, 2021.
However, the newest Government-backed funding iteration, the Growth Guarantee Scheme is now open to applications. This alternative is designed to continue offering SMEs easier access to finance, with competitive fixed interest rates, flexible repayment terms, and a wide range of funding options.
CBILS Loans
What was a CBILS Loan?
The Corona Virus Business Interruption Loan Scheme (CBILS) was a government initiative to support small and medium sized businesses who had been impacted by COVID, especially those who were grappling with revenue loss and disrupted cash flow due to the pandemic. CBILS (along with other financial initiatives set up by the government- Bounce Back Loans, RLS etc.) provided a lifeline for businesses navigating the challenges of the pandemic and who were striving to recover. The government provided lenders with a guarantee for 80% of qualifying loans, from £50,000 up to £5m, with loan terms up to 6 years and no interest payments for 12 months.
Over 87,000 businesses were supported through CBILS, providing over £5.1 billion in financing to almost 700 larger firms.
Key Features of CBILS:
- Guaranteed facilities up to £5 million, with repayment terms of up to six years for term loans and asset finance, and up to three years for overdrafts and invoice finance.
- Provided lenders with a government-backed guarantee against the outstanding balance, while businesses remained 100% liable for repayment.
- No guaranteed fee for SMEs; the government covered the first 12 months of interest payments and lender imposed fees, resulting in no upfront costs and lower initial repayments for businesses.
- Personal guarantees were not required for facilities below £250,000 (though above this threshold, personal guarantees might have been needed at a lender’s discretion)
- Supported lending to smaller businesses by ensuring a borrower’s/guarantor’s Principal Private Residence (PPR) could not have been used as security for a CBILS-backed facility.
Are CBILS Loans Still Available?
This scheme, along with Bounce Back Loans and RLS, was specifically crafted to provide immediate financial support to small and micro businesses impacted by the COVID-19 pandemic, and as of March 31, 2021, is no longer available.
However, its legacy has continued within the business community. The intention to provide crucial financial assistance to businesses has been continued with RLS (closed June 2024), and now most recently with the Growth Guarantee Scheme: the latest iteration of Government-backed funding for small businesses.
Government-backed finance extended: Growth Guarantee Scheme Launched 1st July 2024
Missed Out? Introducing the Growth Guarantee Scheme
Am I Eligible for the Growth Guarantee Scheme?
The latest small business finance facility backed by the UK government is called the Growth Guarantee Scheme. Open to all businesses trading in the UK with turnovers up to £45 million, provided they are not currently in insolvency proceedings. Whether you’re a seasoned borrower or exploring government-backed finance for the first time, the GGS offers an opportunity for businesses to secure affordable financing tailored to their specific needs, with the added benefit of a 70% guarantee to the lender increasing security and lender appetite.
Learn More About the Growth Guarantee Scheme
The GGS is a government-backed initiative designed to offer fixed and capped-rate loans to small businesses, providing easier access to finance for enterprises in need of a cashflow boost or seeking to invest in new equipment. One of the standout features of GGS is that your Principal Private Residence cannot be taken as security, offering additional peace of mind for borrowers.
Visit our GGS page to find out more:
If you’re ready to explore your options under the Growth Guarantee Scheme or want to learn more about how Portman can assist your business in securing the financing it needs, get in touch today. Our dedicated team is here to guide you through the process and help you realise your business’s full potential.
You can still enquire about government-backed funding
CBILS FAQ
Can you have a CBILS, Bounceback or RLS loan and be given GGS?
Businesses that took out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) or a Recovery Loan Scheme (RLS) facility before 30 June 2022 are not prevented from accessing the Growth Guarantee Scheme, but borrowing under some of these Schemes may reduce the maximum amount the borrower is eligible for.
Could businesses apply for CBILS if other lenders had declined them?
Yes, businesses that had been declined by other lenders for traditional finance options could still have been eligible for CBILS. The scheme aimed to provide financial support to businesses that were unable to secure funding on standard commercial terms due to the COVID-19 pandemic.Yes, businesses that had been declined by other lenders for traditional finance options could still have been eligible for CBILS. The scheme aimed to provide financial support to businesses that were unable to secure funding on standard commercial terms due to the COVID-19 pandemic.
Did CBILS require personal guarantees?
Personal guarantees were not required for facilities below £250,000 under CBILS. For facilities above this threshold, personal guarantees might have been needed at a lender’s discretion, with recoveries capped at 20% of the outstanding balance and excluding the Principal Private Residence (PPR) as security.
How did CBILS differ from other loan schemes?
CBILS differed from other loan schemes in various aspects, including its scope, loan amounts, repayment terms, and security requirements. Unlike some other schemes, CBILS covered the first 12 months of interest payments and lender-levied fees, with no upfront costs for SMEs. Additionally, CBILS aimed to support lending to smaller businesses, even where sufficient security was available.
Were there restrictions on how CBILS funds could be used?
CBILS funds could be used for a wide range of business purposes, including managing cash flow, covering operational expenses, investing in equipment or technology, and supporting business growth initiatives. However, funds could not have been used for personal purposes or to repay other debts owed to the lender.
General Enquiries
Do you offer seasonal payment terms?
Yes, Portman does offer seasonal payment terms. Many of our customers naturally experience high demand for their services during certain times of the year as well quieter periods during others. We tailor all finance agreements to the needs of each business, and lower payments can be arranged during periods when there is a predictable reduction in trade.
Do you provide finance outside the UK?
Unfortunately, Portman can only finance companies registered and operating in the UK.
How long will I be paying back the finance?
Terms are available between 2 and 6 years. Options available to you may be dependent on the circumstances of your business, but then the final choice is up to you.
Isn’t it cheaper just to go to a lender direct?
Whilst banks can offer different rates, they often reject certain type of purchase, businesses in different industries and have very strict lending criteria. At Portman we deal with a panel of over 40 lenders as well funding businesses with our own money. We have access to specialist lenders and specialist types of finance, giving a variety of options and a greater chance of success. Portman may have rates that are not available to a customer who goes direct and can also explore the whole lending market in one go, saving you time. We have access to specialist lenders that are not available to individuals and can even put together finance packages from multiple lenders. All of which gives you competitive rates, with a greater chance of acceptance.
