The scheme is open to sole traders, freelancers, body corporates, limited partnerships, limited liability partnerships or other legal entities. Importantly, the business activity needs to be operated through a business account.
To be eligible, parties must:
- Be UK based in its business activity.
- Generate more than 50% of its turnover from trading activity.
- Have <£45 million turnover per annum.
- Operate within an eligible sector (ineligible businesses include : Banks, Building Societies, Insurers and Reinsurers (but not insurance brokers); the public sector including state funded primary and secondary schools; and employer, professional, religious or political membership organisation or trade unions.
- Have a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender, and for which the lender believes the provision of finance will enable the business to trade out of any short-to-medium term difficulty.
Any previous de minimis state aid received does not impact upon eligibility for CBILS and does not need to be taken into account by the lender.
The eligibility criteria for CBILS does not require lenders to take into account the other forms of government support that SMEs may be benefiting from e.g. business rate reliefs or grants unrelated to the CBIL scheme.