Coronavirus Business Interruption Loan Scheme (CBILS) – Asset Finance

Support for businesses with a group turnover between £3 million and £45 million 

If Lloyds Bank do not already currently provide your main Business Current Account or an existing Asset Finance facility, please speak to your main bank for support in the first instance.

Key features of the CBIL Asset Finance scheme

If you are looking to acquire a new asset or finance an existing asset, but your business has experienced difficulties as a result of the coronavirus pandemic, the Coronavirus Business Interruption Loan Scheme may be available to support you.

  • CBILS is a government-backed initiative for businesses with a group turnover of up to £45 million
  • Facilities are available to existing Lloyds Bank customers, including customers who have an existing Lloyds Bank Asset Finance facility
  • You can apply for a Hire Purchase facility between £7,500 and £5 million for a term of 12 months up to 6 years*
  • You will not pay any interest for the first 12 months of the facility**
  • A low-start option with a 50% lower rental is available for the first 6 months of the facility***
  • No upfront arrangement fees

 

As a confirmed accredited lender of the government CBIL scheme, we’re here to support our customers during the coronavirus outbreak.

If you require additional information about the scheme, please visit the British Business Bank website.

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Important:

As of 2 November 2020, the scheme deadline for new applications has been extended by a further two months, until 31 January 2021. 

  • Your business will remain liable for 100% repayment of the facility
  • Your group turnover must be between £3 million and £45 million to be eligible to apply
  • You must have a borrowing proposal which, were it not for the current pandemic, would be considered viable
  • There has been an update to the ‘Undertaking in Difficulty’ criteria for businesses with a turnover less than £9 million and less than 50 employees.  If you didn’t apply for the Coronavirus Business Interruption Scheme because of this reason, or if you have previously applied and believe that you have been declined for this reason, you may now be eligible to re-apply†
  • We are also offering other government-backed lending schemes that might suit your needs
  • If you have already received funding under the Bounce Back Loan Scheme, you cannot apply at this time.

To be eligible for the British Business Bank’s CBIL Asset Finance scheme, please review the three sections below:

Section 1 – Eligibility criteria questionnaire

If you can answer ‘yes’ to all of the following questions, you may be eligible for the government-backed scheme.

All decisions are subject to credit decision.

  1. Are you an existing Lloyds Bank customer, or do you have an existing Lloyds Bank Asset Finance facility?
  2. Have you experienced an impact to the performance of your business (such as a loss in trading) as a result of coronavirus? 
  3. Do you have a small or medium-sized business, with a group turnover between £3m - £45m?
  4. Do you want to borrow less than £5m over a maximum of 6 years?
  5. Does, or will, your business generate 50% or more of its income from selling goods or providing services, OR is you business a charity or further education establishment?
  6. Are you looking to apply for a CBILS Asset Finance facility to acquire or hire an asset? your business based in the UK, and do you plan to use the Asset Finance facility to support trading in the UK?
  7. Can you prove that, if it wasn’t for the difficulties caused by the coronavirus outbreak, you had a viable business that has been trading successfully?
  8. Can you confirm that your business is not subject to collections proceedings or collective insolvency proceedings?

Section 2 – Industry eligibility

The following industries are not eligible under CBILS:

  • Banks, insurers and reinsurers (but not insurance brokers),
  • Public sector bodies, and
  • State funded primary and secondary schools.

Section 3 – Facility criteria

To be eligible for the scheme, your facility should be:

  • Less than twice your annual wage bill for 2019 or the last available year (if your business started after 1 January 2019, is it for less than the estimated wage bill for the first two years?) 
    or
  • Less than a quarter of your 2019 total turnover
    or
  • Less than you’d need to cover your regular expenses over the next 18 months (12 months if you employ more than 250 people). 

Next steps:

How to enquire about the scheme

If you have a Relationship Manager please contact them in the first instance to enquire about your application.

Or

Download your enquiry form

Please download, complete and email your form to our mailbox listed below to start your enquiry.

Returning your enquiry form

Please email your form to HPDirectcoverage@lloydsbankcf.co.uk.

We are experiencing high levels of demand and are doing all that we can to support our customers at this time.

Thank you for your patience.

The guarantee is to the Lender and not the Borrower. The Borrower remains 100% liable for the facility at all times.

All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on you and your business.

*In aggregate across all Coronavirus Business Interruption Loan Scheme products

**The British Business Bank will cover the first 12 months interest of the facility on a customers behalf. Fishery, aquaculture and agriculture businesses may not qualify for the full interest and fee payment.

*** For the low start option the remaining 50% discount of rentals to be split equally across remainder of facility.

†For CBIL Scheme facilities of £30,000 or more, as of 30 July 2020, smaller businesses with fewer than 50 employees and also less than £9,000,000 in either annual turnover and/or annual balance sheet total will not be considered 'Undertakings in Difficulty' unless they are (a) subject to collective insolvency proceedings under national law, or (b) in receipt of rescue aid (which has not been repaid) or restructuring aid (and are still subject to a restructuring plan).

You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.

This is a provisional assessment of eligibility only. This is not an offer of support or confirmation that you'll be eligible for support. An offer of support will be dependent upon a full credit assessment and further checks to confirm scheme eligibility. 

The Coronavirus Business Interruption Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit british-business-bank.co.uk