Coronavirus Business Interruption Loan Scheme

The Coronavirus Business Interruption Loan Scheme (CBILS) is designed to support existing HSBC UK customers who have a borrowing need which we would consider viable were it not for the COVID-19 pandemic.

At a glance:

  • A Government guarantee which secures bank loans to any viable business with a sound borrowing proposal.

  • No fee required for Government guarantee.

    No loan arrangement fee or loan prepayment fee, should you wish to repay early.

  • For incorporated entities: Available for sums of £10,000 to £5,000,000.*3

    For sole traders and partnerships: Available for sums of £25,001 to £5,000,000.*3

  • An interest free period of 12 months will apply*1, after which you will be charged:

    • 3.49% over Bank of England Base Rate for loans up to and including 3 years.
    • 3.99% over Bank of England Base Rate for loans over 3 years.
  • No repayment of capital required during the period of 12 months from drawdown.*2

    The loan can be repaid over any period up to 6 years.

  • Variable interest rate with option to fix.

Key benefits

The government can back your proposal to help you get the funding you need.
Financial support through the short-term uncertainty due to COVID-19.
Expand or diversify your business.

Quick check CBILS eligibility criteria

IIf you can answer ‘yes’ to all of the following questions, you may be eligible for CBILS*3:

  1. Are you an existing HSBC UK business customer?
  2. Is your business based in the UK?
  3. Will the funding you require be used to support business activity within the UK?
  4. Is over 50% of your business turnover generated from trading activity?
  5. Was your 2019 business turnover less than £45m? If your business is part of a larger group of companies, please use the total group turnover.
  6. Do you operate in an eligible sector*4?
  7. Is the loan to be used for an eligible purpose*6?
  8. The amount you require is between*7;
    • £10,000 and £5m for incorporated entities,
    • £25,001 and £5m for sole traders and partnerships?
  9. Is funding required for 6 years or less?
  10. You understand that you will be liable for 100% of any facility that may be provided, and that HSBC will always seek to recover the outstanding balance of any facility from you and the proceeds of any security you, or any security provider on your behalf, has given for the loan?

Important Information

  • You are liable for repaying 100% of the loan and HSBC will always seek to recover the outstanding balance from you and any security you, or any security provider on your behalf, has taken under the loan.
  • Under the Business Interruption Payment rules, the maximum assistance that can be provided is €800,000, with restrictions in certain sectors.
  • No personal guarantees required in connection with loans of less than or equal to £250,000.
  • For lending greater than £250,000, we will review security requirements on an individual basis. If a personal guarantee is deemed appropriate, it will be taken for maximum of 10% of the loan amount we agree with you.*5
  • We are working towards reducing the minimum sum for sole traders and partnerships to £10,000.

Next Steps

To apply for CBILS, click here

You can also call us on 08000 121 614*8 or speak to your Relationship Manager.

You may need to provide any of the following:

  • 2019 Year-End Profit and Loss statement
  • 2019 Year-End Balance Sheet
  • Year-to-date Profit and Loss statement
  • Year-to-date Balance sheet
  • Cash flow or Profit and Loss forecast for the next 12 months

Please ensure you have this information available in order to progress application.

Important Information

CBILS is delivered by the British Business Bank, through HSBC UK as an accredited lender. CBILS provides HSBC UK with a government-backed guarantee, potentially enabling a 'no' credit decision to become a 'yes'. CBILS will support the continued provision of finance to UK SMEs during the Covid-19 outbreak.

*1 You can elect to receive a Business Interruption Payment (BIP) from the UK Government to cover the amount of your loan security fees and your first 12 months of interest payments. If you elect to receive a BIP, this will be paid directly to HSBC by the UK Government.

*2 Subject to status, capital repayment holiday can be extended up to 24 months during the life of the loan.

*3 All loans are subject to status. Terms and conditions apply. Further eligibility criteria may apply.

*4 The following trades and organisations are not eligible to apply: Banks, Building Societies, Insurers and Reinsurers (but not insurance brokers); The public sector including state funded primary and secondary schools.

*5 If you default on your loan, we will look to realise all other available collateral provided to support your loan before we make a demand on any personal guarantee. The maximum we would then seek to recover under any personal guarantee will be limited to 20% of the amount of your loan that remains outstanding after the proceeds of all other available collateral have been applied.

*6 Eligible purposes are Short Term Working Capital; Starting up trading in the UK; Expanding an existing business within the UK; Buying a business (including goodwill) in the UK; Purchase of equipment; Purchase / lease of property; Developing a project; Additional Research and Development (business must carry out a commercial activity).

*7 Fishery, aquaculture and agriculture businesses may not qualify for the full interest and fee payment.

*8 Lines are open 8am to 6pm Monday to Friday (except public holidays). To help us continually improve our service and in the interests of security we may monitor and/ or record your communications with us.

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