Coronavirus Business Interruption Loan Scheme | Ulster Bank

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Coronavirus Business Interruption Loan Scheme (CBILS)

The Coronavirus Business Interruption Loan Scheme is now closed to new applications. Please note, applications received by 23.59 on 31 March 2021 can still be processed through to 31 May 2021. If you have a query about CBILS or wish to discuss an outstanding application, please contact us using your usual bank contact.

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Coronavirus Business Interruption Loan Scheme


Recovery Loan Scheme

A new debt finance programme, the Recovery Loan Scheme (RLS), was announced by the Government in the Budget on 3 March 2021.


The new Scheme, which will open on 6 April 2021, aims to support businesses affected by Covid-19 as they recover and grow following the pandemic.


Further information can be found on the British Business Bank website.
 

What is CBILS?

The Coronavirus Business Interruption Loan Scheme (CBILS) is a government initiative to support small and medium-sized businesses. The government provides lenders like Ulster Bank with a guarantee for 80% of qualifying loans. 

Note, the borrower remains liable for all of the debt.

  • Borrow from £50,001 up to £5m.
  • Loan terms up to 6 years with fixed and variable interest rates available.
  • 12 month capital repayment holiday is automatically applied at the start of the loan (this may mean you pay more interest over the term).
  • Interest for the first 12 months is paid by the government, and then by you for the remainder of the loan term.
  • Choose to make repayments at any time with no early repayment fee.

Security may be required. Over 18s only. Subject to status. Business use only. Any property or asset used as a security may be repossessed or forfeited if you do not keep up repayments on any debt secured on it. Fishery, aquaculture and agriculture businesses may not qualify for the full interest and fee payment.

Is your business eligible for a loan under CBILS?

You may be eligible if:

  • You're a UK-based business;
  • Your annual group turnover is no more than £45m;
  • You can certify that your business has been impacted by coronavirus;
  • You can show evidence of affordability for lending prior to coronavirus.

You won’t be eligible if:

  • You’re a bank, insurer, reinsurer (but not insurance brokers), public sector body, state funded primary or secondary school.
  • Your business is subject to collections or collective insolvency proceedings.
  • Your business already has (or is in the process of applying for) a Bounce Back Loan unless that loan is repaid as part of your CBILS application.

Useful info about our Coronavirus Business Interruption Loan

What is the Coronavirus Business Interruption Loan Scheme (CBILS)

The Coronavirus Business Interruption Loan Scheme (CBILS) is a government initiative to support small and medium-sized businesses who have been impacted by Coronavirus. The government provides lenders like Ulster Bank, with a guarantee for 80% of qualifying loans. 

Borrow from £50,001 up to £5m, with loan terms up to 6 years and no interest payments for 12 months. 

CBILS 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  

Who is eligible to apply for a CBILS loan

You may be eligible to apply if:
You're a UK-based business
Your annual group turnover is no more than £45m
You can certify that your business has been impacted by coronavirus
You can show evidence of affordability for lending prior to coronavirus

You won't be eligible to apply if:
You’re a bank, insurer, reinsurer (but not insurance brokers), public sector body, state funded primary or secondary school. 
Your business is subject to collections or collective insolvency proceedings
Your business already has (or is in the process of applying for) a Bounce Back Loan unless that loan is repaid as part of your CBILS application.

How to apply for a CBILS loan

The Coronavirus Business Interruption Loan Scheme is now closed to new applications. Please note, applications received by 23.59 on 31 March 2021 can still be processed through to 31 May 2021. If you have a query about CBILS or wish to discuss an outstanding application, please contact us using your usual bank contact.

CBILS loan interest rates

Interest on your CBILS loan will be a Fixed or Variable interest rate.
The interest rate applied to your CBILS loan will be detailed in your loan agreement or advice letter if any changes have been applied.

 

Interest is calculated daily and applied as detailed in your loan agreement.

 

Interest during the first 12 months will be paid by the government. Remember that you are responsible for paying back the whole loan, including interest after the first 12 month period. 

Repayment holiday on CBILS loans

Upon drawdown, an automatic 12 month repayment holiday will be applied. Your repayments are due to start 1 month after the repayment holiday ends (you can make extra repayments or repay the loan early without penalty, and doing so could also help save you money on your interest rate).

Making CBILS loan repayments

You must repay the loan and interest as detailed in your loan agreement so the loan is fully repaid by the final repayment date in your loan agreement.

 

You can make extra repayments or repay the loan early without penalty, and doing so could also help save you money on your interest payments.

 

You'll need a current or loan servicing account with us for your repayments.

 

Payments will be required to cover your monthly repayments and interest as advised.

Business Interruption Payment (BIP)

The BIP is a payment by the UK Government to cover the first 12 months of interest payments and any lender-levied charges associated with your CBILS loan.

 

When you apply for the CBILS loan you agree that the UK Government may pay these BIP amounts directly to us. The assistance provided through the BIP is made under the Temporary Framework for State Aid, which is deemed to benefit you as it has provided you with a payment to reduce your financing costs under your CBILS loan which would not otherwise have been possible.

 

We will provide BIP statements and it is your responsibility to ensure that you do not breach state aid limits.

The CBIL scheme is now closed to new applications

The Coronavirus Business Interruption Loan Scheme is now closed to new applications. Please note, applications received by 23.59 on 31 March 2021 can still be processed through to 31 May 2021.

If you have a query about CBILS or wish to discuss an outstanding application, please contact us using your usual bank contact. 

Contact us on: 0345 366 5592 (UK)

Lines are open 9.00am – 5.30pm Monday to Friday (except public holidays). Call charges

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.

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