1. Home
  2. Coronavirus support for business
  3. Business Interruption Loan Scheme

Coronavirus Business Interruption Loan Scheme (CBILS)

The Coronavirus Business Interruption Loan Scheme is a new government scheme that can provide lending facilities of £50,001 up to £5 million for smaller businesses across the UK who are impacted by coronavirus, by accessing lending through your bank providing that you meet the eligibility and our own lending criteria.

Key benefits

  • Smaller businesses will benefit from no upfront costs and lower initial payment
  • No interest payable for the first 12 months from drawdown of the facility (for overdrafts, this is from when the facility is made available to you).

After the first 12 months, the borrower is liable for any interest or fees on the debt. The borrower will remain liable for repayment of 100% of the borrowing.

Whilst under the scheme, personal guarantees will not be taken for borrowing under £250,000, the Bank will continue to adhere to its existing security requirements and may request debentures and commercial property as security where applicable and available. Security may be required for facilities over £250,000 including Personal Guarantees, but Primary Residential Property will not be taken as security under the scheme and recoveries under the Personal Guarantee are capped at a maximum of 20% of the outstanding balance of the CBIL facility after the process of business assets have been applied. The government provides a guarantee to the bank for the facility.

Subject to status and eligibility, Terms and Conditions apply.

CBIL Scheme exclusions

All sectors can apply excluding:

  • Banks, insurers and reinsurers (but not insurance brokers)
  • Public-sector bodies
  • Further-education establishments, if they are grant-funded
  • State-funded primary and secondary schools
  • Pension schemes

A full list of eligible and excluded sectors can be found here:

Ineligible and Restricted Eligibility Sector list

If you can satisfy the criteria below and your business is not in the scheme exclusions list above, then you could be eligible for lending under the CBIL Scheme;

  • You are able to self-certify that your business has been impacted by the coronavirus (COVID-19)
  • You are a UK-based business, with a total annual group turnover of no more than £45 million
  • You are looking for business funding ranging from £50,001 up to £5million via a Loan or Overdraft facility
  • Your business must generate more than 50% of its turnover from trading activity
  • You're able to confirm that your business generates more than 50% of its turnover from trading activity (Further Education establishments and registered charities are exempt)
  • Business not subject to collections or collective insolvency proceedings – this is part of The Co-operative Bank’s eligibility criteria.

If you don't meet the CBILS eligibility you may still be able to apply for our usual range of lending.

Visit our lending hub

Disclaimer:

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).

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

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).

British Business Bank logo

Standards of Lending Practice

The Co-operative Bank is one of the registered firms to subscribe to the Standards of Lending Practice which set the benchmark for good lending practices in the UK. The Standards outline the way registered firms are expected to deal with their customers throughout the entire product life cycle.

For more information on the The Standards of Lending Practice please visit the Lending Standards Board website.

You can also view further information on our commitments to our business customers and what we ask of you.

Contact us

If you'd like more help & information, you can: