What is the eligibility criteria?
Please see the ‘Quick check CBILS eligibility criteria’ section on this page.
Am I guaranteed to be eligible for CBILS?
Unfortunately, we can’t guarantee that you’ll be eligible. You must be an existing HSBC business customer and you must also meet the scheme rules which are set out in the eligibility criteria here.
Do I need to provide evidence that I have a viable business?
Yes. You must show in your borrowing proposal that were it not for the current pandemic, HSBC UK would consider your business viable.
You must also self-certify that your business has been adversely impacted by the coronavirus outbreak.
We will then assess your borrowing proposal using our normal lending criteria.
I have had de minimis aid in the past, can I still get a loan?
Yes, as long as you meet the scheme's eligibility criteria. Any previous de minimis state aid does not impact your eligibility for CBILS and does not need to be taken into account. CBILS operates as a notified scheme rather than under de minimis as EFG did. There is no interaction between any de minimis state aid previously received by a business and the size of the CBILS facility they can access, should they be eligible.
What sectors are ineligible for CBILS?
The following are not eligible under CBILS:
- Banks, insurers and reinsurers (but not insurance brokers).
- Public sector bodies.
- Further educational establishments if they are grant funded.
- State funded primary and secondary schools.
There are also certain restrictions around the following sectors and you will need to check carefully around the loan amount being requested:
- Production of Agricultural Products
- Fisheries and Aquaculture
What percentage of my annual turnover must be generated by trading activities to be eligible for CBILS?
You must be generating more than 50% of your income from trading activity. CBILS is not designed to support shell companies or investment companies. Trading Activity is defined as any activity that generates turnover (whether or not such activity is carried on with the intention of making a profit)
Can I use CBILS to access finance to pay wages/salaries?
Yes, the CIBL Scheme can be used to support short term cashflow needs. One of the eligibility criteria is for the business to have an annual turnover of no more than £45m.
Is the £45m turnover threshold based on the entirety of the Group or could the funding be taken by a single operating subsidiary? Can the different companies within the group access their “own” guarantee?
If you are part of a group, controlled on either a legal or de facto basis, the maximum turnover applies to the group undertaking.
My company had over £45m turnover previously but this year will be beneath that due to COVID-19, can I apply for CBILS? i.e. is the turnover based on past years turnover, or projected turnover for this year?
Your group turnover must not have exceeded £45m per annum in the 12-month period preceding application based on latest annual accounts.
How should I calculate trading activity and turnover for start ups?
For start-ups, or SMEs which have traded for less than 12 months, you should estimate this based upon your business forecasted turnover for the first 12 months of trading.