Half of Coronavirus Business Interruption Loans now approved

We have previously reported on the lack of applications being accepted under CBILS and in April this was as low as 20%. The latest results published by UK Finance shows this has improved reaching 56% on 10 May 2020, dropping slightly to 50% on 17 May 2020. While the improvement is positive for those businesses wanting to get a business loan through CBILS, this is still behind the acceptance rate of 80% achieved for business loans prior to the Coronavirus pandemic.
So far there has been £7.25 billion lent under CBILS, to 40,654 businesses. The CBILS larger loan scheme has provided 86 loans totalling £590 million. However, this is half what has been lent in less time under the Bounce Back Loan (BBL) scheme at £14.18 billion. The latter scheme is 100% Government backed and has a simpler application and certification process. The BBL scheme was launched after CBILS and it is likely that many of the smaller CBIL loans were transferred to this scheme.

The British Business Bank has announced six new lenders joining the Coronavirus Business Interruption Loans Scheme (CBILS). This now brings the scheme to 74 lenders across business loans, asset finance, invoice finance and business overdrafts. The new lenders are:

• Bibby Financial Services
• iwoca
• Scaniaa Financial Services
• Tridos Bank UK
• Ulster Community Investment Trust
• Woodsford TradeBridge

We’ve looked at the offer from each lender to find out which business finance product they will offer under CBILS, if they will be open to applications from new customers and when businesses can apply.
Bibby Financial Services 0ffers invoice finance and has a dedicated CBILS information on its website. Businesses can make an expression of interest.
Woodsford TradeBridge and Ulster Community Investment Trust have yet to publish information about their CBILS scheme.
New customers can express their interest in a business loan to iowoca, but the lender will be prioritising existing customers first. They are offering loans of £50,001 to £250,000 over three years, with no fees to repay early. Tridos Bank UK is also providing loans under the scheme and asks those businesses that are interested to register their interest. Their website refers to contacting your relationship manager but is not explicit if it will or will not accept applications from new clients or the priority of these.

Those businesses looking for asset finance, now have an additional provider in Scania Financial Services. They will offer asset finance from £25,000 up to £5 million over terms of 12 to 72 months. Refinancing other asset finance schemes is not permitted. They have an online form businesses can complete to request more information.

Business will need to meet the minimum requirements of the scheme. Visit our guide about CBILS to find our more about how it works and how to apply.
Businesses can apply directly for a loan to their own bank or lender that is authorised under CBILS or seek the help of a business loans broker. A broker helps businesses to quickly and easily find those lenders most suitable for each business.