CBILS is a new scheme that can provide facilities for a range of Business Finance products directly to smaller businesses across the UK who have been adversely affected by COVID-19 and experiencing lost or deferred revenues, leading to disruptions to their cashflow.
The CBILS scheme provides Shire Leasing and other accredited lenders with a government-backed guarantee potentially enabling Shire Leasing to provide Asset Finance and Term Loan 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 Shire Leasing 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.
CBILS facilities from Shire Leasing
Which CBILS facilities can Shire Leasing offer?
- Term Loans – Term Loans from £50,001 to £100,000
- Asset Finance – Asset Finance (including Sale and Leaseback/ Sale and HP Back) from £25,000 to £200,000
Not all lenders, including Shire Leasing, provide every type of finance available under CBILS.
The scheme supports a wide range of business finance facilities of up to £5m for different products, including term loans, overdrafts, invoice finance and asset finance facilities.
Businesses may choose to consider approaching other accredited lenders if they are unable to access the finance they need via Shire Leasing.
What are the key features of Shire Leasing's CBILS Scheme?
- Finance facilities between £25k to £200k – The maximum value of a facility provided by Shire Leasing under the scheme will be £200k for Asset Finance and £100k for Term Loans.
- Finance terms – Available up to 6 years for term loans and asset finance facilities.
- No personal guarantees – Personal guarantees of any form cannot be taken under the scheme for any facilities below £250k.
- Security – Insufficient security is no longer a condition to access the scheme, increasing the number of businesses that are eligible.
- 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.
What is Shire Leasing's eligibility criteria?
SMEs from all sectors can apply for the full amount of a CBILS facility. Shire Leasing are offering CBILS facilities initially to existing SME customers only, but with a view to new customers from within the UK.
To be eligible for a business finance facility under Shire Leasing’s CBILS, your business must:
- Be UK based in its business activity, with turnover of no more than £45m per year
- Generate more than 50% of its turnover from trading activity
- Have a borrowing proposal which, were it not for the current pandemic, would be considered viable by Shire Leasing PLC
- Self-certify that it has been adversely impacted by the Coronavirus (COVID-19)
Please note, the following are not eligible under CBILS:
- Banks, insurers and reinsurers (but not insurance brokers)
- Public sector bodies
- State funded primary and secondary schools
- Finance is for business use customers only.
- All finance is subject to credit status, approval, terms and conditions.
- As with any other commercial transaction, the borrower is always responsible for repayment of the full value of any facility supported by CBILS.
- 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.
For more information directly from the British Business Bank, please click here.
Supporting your application
Before making an application, you should check that you meet the eligibility criteria of CBILS and have reviewed what different lenders can offer.
It may be useful to prepare the following in advance, to help us to speed up the application.
- The amount you would like to borrow
- What the money is for — so we can check that it’s a suitable business purpose and the right type of finance for your needs
- The period over which you would like to make the repayments
You will also need to provide certain documents when you apply for a CBILS-backed facility. These requirements vary, but are likely to include:
- Management accounts
- Business plan
- Historic accounts
- Details of assets