Asset Finance Coronavirus Business Interruption Loan Scheme (CBILS)

Following the Budget announcement on 11 March 2020 the British Business Bank are offering the Coronavirus Business Interruption Loan scheme through participating lenders.

What is the Coronavirus Business Interruption Loan Scheme (CBILS)?

 

CBILS is a new scheme that can provide facilities for a range of Business Finance products to smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.

Aldermore is accredited for CBILS via the British Business Bank and able to support with Asset Finance for advances between £50k and £250k.

The CBILS scheme provides Aldermore and other accredited lenders with a government-backed guarantee potentially enabling Aldermore to provide Asset Finance facilities to SMEs to support their investment in new and used assets. In the absence of the CBILS scheme, those SMEs would ordinarily have difficulty raising such finance due to the impacts of COVID-19 as they would likely fall outside of the Aldermore and other asset finance funders’ normal appetite. 

Please note: This scheme is just one of a number of measures announced by Government and full details of the temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19 can be found here.

 

For more information directly from the British Business Bank please click here

What are the key features of Aldermore’s Asset Finance CBILS Scheme?

  • Advances between £50k to £250k - The maximum value of a facility provided by Aldermore under the scheme will be £250k  
  • Finance terms - between 12 and 60 months
  • No guarantee fee for SMEs to access the scheme - No fee for smaller businesses
  • Interest and fees paid by Government for the first 12 months  - The Government will make a Business Interruption Payment to cover the first 12 months of interest payments, so smaller businesses will benefit from no upfront costs and lower initial repayments

 

Please note: As with any other commercial transaction, the borrower is always responsible for repayment of the full value of any facility supported by CBILS.

How do I know if I’m eligible to apply with Aldermore?

Smaller businesses (SMEs) from all sectors can apply for the full amount of the facility, between £50k and £250k.

To be eligible for a facility under Aldermore Asset Finance CBILS, your business must:

  • Be UK based in its business activity with annual turnover of no more than £45m
  • Your application must be for business purposes
  • Your business must generate more than 50% of its turnover from trading activity
  • Your CBILS-backed facility will be used to support primarily trading in the UK
  • You wish to borrow between £50k and £250k over a period of between 12 and 60 months
  • Have a borrowing proposal which, were it not for the COVID-19 pandemic, would be considered viable by Aldermore, and for which we believe the provision of finance will enable your business to trade out of any short-to-medium term difficulty

 

If Aldermore can offer finance on normal commercial terms without the need to make use of the scheme, we will do so.

How can Aldermore help?

Aldermore is accredited for the CBILS (Coronavirus Business Interruption Loans Scheme) within Asset Finance via the British Business Bank that we can offer to SMEs via our broker partners.

We work with a growing list of brokers who are accredited for the scheme and if you are already a customer of Aldermore, please speak to your existing Asset Finance broker.

If you don’t have an Asset Finance broker, we are a Patron of the National Association of Commercial Finance Brokers (NACFB) whose list of brokers can be found via their website.

Important Information

 

  • Please note: As with any other commercial transaction, the borrower is always responsible for repayment of the full value of any facility supported by CBILS.
  • Please note: The guarantee is to the lender, and not the small business.
  • Any queries from a business with an active or historic EFG facility, including guarantee fee collection or alterations to their repayment profile should raise them with their lender, and not with the British Business Bank.

 

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 (BEIS).

British Business Bank plc is wholly owned by HM Government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).

Full details on CBILS eligibility criteria and the list of participating CBILS lenders can be found on the British Business Bank website here.

 

T&Cs will apply, subject to status and affordability. Any asset used as security may be at risk if you do not repay any debt secured on it.