COVID-19: Essential information

COVID-19: CBILS and BBLS: Which one is right for you?

13 May 2020
3 minute read

Jhanvi Gudka

In the past couple of months, the Government has announced two key loan products for small businesses under the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS). In this blog, we outline the key differences between them so you can decide which one is best suited to you. 

What are the schemes? 

CBILS offers loans of up to £5 million for small businesses who are experiencing a loss in revenues or disruption to their cashflow. The loans can be repaid within six years for term loans and asset finance and three years for overdrafts and invoice finance. The Government will pay interest and fees for the first 12 months. 

BBLS is a loan scheme for micro and small businesses who can access up to £50,000 (or 25% of their turnover if less than £50,000). The Government will pay interest and fees for the first 12 months, after which the interest rate will be 2.5% per year and the cash can be in your account within days. 

Who can access CBILS and BBLS? 

For both you’ll need to prove that your business has been adversely affected by COVID-19. 

CBILS loans are available to businesses that have an annual turnover of up to £45 million. 

BBLS loans are available to any business that was established before 1st March 2020. You cannot apply for a BBLS loan if you are already claiming finance under CBILS.  

How do I apply? 

There are over 50 lenders offering CBILS loans including the major banks and if one lender turns you down, you can apply to other lenders accredited under the scheme. Liberis is working hard to become an accredited lender and we will share more information about that with you directly when we can.  

There are 11 lenders approved to provide BBLS loans so far and you can apply quickly and easily by answering seven questions. 

To see which financial support you might qualify for alongside CBILS or BBLS, you can use this quick and easy tool

For any question about either scheme, feel free to speak to one of our friendly agents. 

Disclaimer: The content of this page is a summary of the law in force at the present time and is not exhaustive. Any links to other sites, are provided for your information only: Liberis is not authorised to provide financial advice. If you access other sites using the links provided, we accept no responsibility for the content of those sites 

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