A client will need to satisfy the banks normal lending criteria initially. The bank will then look to use their normal channels to facilitate the loan.
Terms of the CBILS are as follows:
- Maximum facility value of £5m
- Twelve month interest free period. The Government will cover the first twelve months of interest payments as well as any upfront fees.
- Terms are up to six years
- No arrangement or security fee
Loans are limited to a maximum of 25% of 2019 turnover or double the annual wage bill, whichever is greater.
The loan starts at £25,000 up to a maximum facility of £5m
The banks can make unsecured lending offers for facilities up to £250,000, at their discretion. This means they will not take assets as security and will rely only on a personal guarantee.