ANNOUNCEMENT 23 Mar 2020

On 23 March 2020, the government of the United Kingdom announced the Coronavirus Business Interruption Loan Scheme (CBILS) for smaller businesses affected by the Coronavirus outbreak.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

UK Department for Business, Energy & Industrial Strategy, Business Finance and Support, Guidance, “Apply for the Coronavirus Business Interruption Loan Scheme”. Available at: https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme#eligibility

British Business Bank, State-owned bank of UK, “Coronavirus Business Interruption Loan Scheme”. Available at: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/

HM Treasury, Business and Industry, Collection, “HM Treasury coronavirus (COVID-19) business loan scheme statistics”. Available at: https://www.gov.uk/government/collections/hm-treasury-coronavirus-covid-19-business-loan-scheme-statistics

UK Department for Business, Energy & Industrial Strategy, "Coronavirus Business Interruption Loan Scheme (CBILS): EU State Aid Rules and “Undertakings in Difficulty”. Available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/904897/200709_EST_letter_-_UKF_UiD.pdf

British Business Bank, State-owned bank of UK, News, "Coronavirus loan schemes and the Future Fund extended to 30 November 2020". Available at: https://www.british-business-bank.co.uk/coronavirus-loan-schemes-and-the-future-fund-extended-to-30-november-2020/

Inception date: 23 Mar 2020 | Removal date: 31 Mar 2021

Loan guarantee

On 23 March 2020, the government of the United Kingdom announced the Coronavirus Business Interruption Loan Scheme (CBILS) for smaller businesses affected by the Coronavirus outbreak. Under the CBILS, the government guarantees 80% of the financing against the outstanding balance of the facility (both capital and interest). There are no guarantee fees for SMEs.

With the CBILS financial support scheme, the government targets small and medium-sized businesses having a turnover of less than GBP 45 million (USD 52.2 million). The program aims to help the businesses “that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak”. The scheme is facilitated by the state-owned British Business Bank and delivered through its delivery partners.

The maximum amount available through CBILS per business is GBP 5 million (USD 5.8 million). The term of the loan is up to 3 years for overdrafts and invoice finance facilities and up to 6 years for loans and asset finance facilities. All UK-based businesses from any sector can apply to the scheme.

The scheme will be effective until 30 September 2020.

On 14 July 2020, the Treasury of the UK announced the latest statistics concerning CBILS. According to the announcement, as of 12 July 2020, a total of GBP 11.85 billion (USD 13.74 billion) of facilities has been approved under CBILS.

On 30 July 2020, the UK government amended the rules for CBILS and allowed micro and small businesses which were classed as undertakings in difficulty on 31 December 2019 to be eligible for the CBILS. Previously, financial support was not awarded to businesses which were ‘in difficulty’ at the end of 2019.

On 24 September, the UK government announced that the CBILS is extended until 30 November 2020.

On 2 November, the UK government announced that the CBILS is extended until 31 January 2021.

On 17 December 2020, the UK Government has announced that the CBILS will be extended until 31 March 2021.

 

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 23 Mar 2020 | Removal date: 31 Mar 2021

Interest payment subsidy

On 23 March 2020, the UK government announced introducing the Coronavirus Business Interruption Loan Scheme (CBILS) for smaller businesses affected by the Coronavirus outbreak.

Under the CBILS, businesses are offered financial support up to GBP 5 million (USD 5.8 million). The term of the loan is up to 6 years for loans and asset finance facilities and up to 3 years for overdrafts and invoice finance facilities. The UK government pays interest and any fees for the first 12 months.

The scheme will be effective until 30 September 2020.

On 24 September, the UK government announced that the CBILS is extended until 30 November 2020.

On 2 November, the UK government announced that the CBILS is extended until 31 January 2021.

On 17 December 2020, the UK Government has announced that the CBILS will be extended until 31 March 2021.

 
 
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