The British Business Bank’s CBILS facilitates business finance to smaller businesses that are viable but unable to obtain finance due to having insufficient security to meet the lender’s normal requirements. In this situation, CBILS provides the lender with a government-backed 80% guarantee against the outstanding facility balance, but it is important to note that the borrower always remains 100% liable for the debt.
Subject to certain eligibility criteria, loans of between £1,000 and £5.0 million are potentially available through accredited lenders. To apply for a CBILS-backed facility, businesses should, in the first instance, approach one of the 40+ accredited lenders with their borrowing proposal. If the accredited lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so. Where the small business has a sound borrowing proposal but insufficient security, the lender will consider the business for support via the scheme.