The scheme is not a subsidy. The program offers a guarantee to a lender so that it can provide financing, but businesses still have to repay that loan or facility. What fees and interest do I have to pay? For SMEs, there is no guarantee fee for the use of CBILS. Interest and fees collected by the lender are paid by the government for the first 12 months after using your facility through a business interruption (GDP) payment. One of the eligibility criteria is that the company has an annual turnover of no more than £45 million. Would the £45 million turnover threshold be measured in relation to the group as a whole or could the financing be provided by a single operating subsidiary? Can the different companies in the group access their ”own” guarantee? If your company is part of a group controlled either by law or de facto, the maximum turnover applies to the group company. More than one company within the group may be considered for an investment by CBILS, but only if the consolidated turnover of the group does not exceed the annual threshold of £45 million. The waiting period is 12 months before the application is submitted. Can CBILS be used to finance an existing trade facility? Note: For many customers who turn to their existing lenders for a smaller facility, the process can be automated and therefore may not require the same level of documentation.
3 Please note that with sufficient insurance, it is likely that the lender will assume this security to support a CBILS facility Are there any exceptions to the need for a business to be a ”firm in difficulty”? For asset financing facilities and account financing facilities below £30,000, the `Firms in difficulty` test (or the alternative test for micro-small enterprises) does not apply, as a facility of this amount is considered a de minimis amount of State aid. New guidelines of 25 September 2020 make it possible to define the assessment ”Enterprises in difficulty” at the time of submission of the application for the system facility. This means that a company that was a ”firm in difficulty” on 31 December 2019, but is no longer a `firm in difficulty` at the time of applying for a regulatory facility, is now (in principle) eligible for the scheme. For all institutions, including those over £250,000, CBILS supports small business loans, even if a lender believes there is sufficient collateral. If there are sufficient guarantees, it is likely that the lender will assume this guarantee in support of a CBILS facility. The principal residence of a borrower/guarantor (PPR) cannot be considered as a guarantee to support a personal guarantee or as a guarantee for a CBILS facility (but a lender may want to do so to support a commercial entity in addition to the CBILS-backed facility). Where a personal guarantee relating to a CBIL facility uses an amount of £250,000, including where such a facility benefits from an existing or future personal guarantee, the following rules apply: Can CBILS be used to finance an existing commercial facility? In certain circumstances, they may use a CBILS mechanism to repay existing debts. For example, if you want to place your business on a more stable financial basis and/or improve your working capital position, a CBILS facility could in principle be made available if you meet the eligibility criteria of the programme. .