Can I top up a CBILs Loan?

CBILS top UP

FAQ: CBILS Facilities – Scheme ends 31st March 2021

Is it possible for a lender to Top UP a CBILS loan or refinance one that already is set-up?

Would this mean a business can benefit from a new 12 month BIP Period?

The UK Government offer BIP to business borrowing money in order to cover interest and other fees associated with a CBILS facility. This is for a maximum of 12 months from the set-up of the facility.

It is not allowed that lenders refinance or top up any CBILS loan facility (regardless of who the lender is) just for the purpose of being able to take advantage of a new 12 month BIP Period.

Instead, the lender should speak to the buyer about the various lending schemes, options and support that is available to them

If a business asks to increase the amount of their CBILS facility, will they benefit from a new year of BIP period?

Rather than increase the existing CBILS facility, it is expected that if a business is looking to increase by more than £50,000, the lender sets up a new facility rather than refinancing the existing one. This will mean the business goes under a new eligibility check but also receives a new BIP offer.

If the business wishes to increase by less than £50,000 it is deemed acceptable in this circumstance to refinance their existing CBILS facility into a new one.

As long as the business/borrower is eligible it is also acceptable to start a new 12 month BIP period, based on when the new refinanced CBILS facility is agreed.

If it possible for a borrower to apply/have more than one CBILS facility at a time?

As long as the maximum amount they are eligible to borrow is not exceeded, it is possible to have multiple CBILS facility running. The maximum amount allowed is:

  • No more than 25% turnover as of 2019
  • No more than double its wage for 2019, or the last year that is available
  • Self-certified and with the correct justification by the person applying. The liquidity needs of the Applicant from the moment of granting for the coming 18 months. The Applicant’s liquidity plan may include both working capital and investment costs.

The amount determined by these is also capped at £5m. Within an SME group, it is possible for each individual within the group to obtain their own CBILS facility. This would come with its own set of guidelines.

Is it possible to use accounts from 2020 to determine how much can be borrowed?

If the lending is based on the total turnover of the person applying then the 2019 accounts must be used. However, if it is the annual wage that is being taken into account then the lender can use the 2020 accounts to calculate this if they wish.

We can help offer FREE advice and FREE processing of any type of application. There is no one size fits all solution and many businesses have different needs and requirements. We can help guide you through the many different options.

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