Can I apply for a second CBILS loan?

4 Jan 2021

On December 17th 2020 Chancellor Rishi Sunak announced that the Coronavirus Business Interruption Loan Scheme (CBILS) is being extended to the end of March 2021. Previously, the deadline was set to the end of January.

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As we begin the new year under coronavirus restrictions, you might be considering applying for further financial support in the form of a second CBILS loan. It is in fact possible to apply for a second CBILS loan.

However, there are two main conditions you’ll have to meet in order to be eligible (as well as additional lender criteria).

1. You’ll only be able to apply for a second CBILS loan if you haven’t yet received a loan for the maximum amount available to your business. This is set at 25% of your annual turnover.

2. The value of your two CBILS loans combined cannot exceed 25% of your business’ annual turnover.

For instance, if your first CBILS loan was the equivalent of 20% of your annual turnover, you may be able to borrow a further 5% from an accredited lender. 

You can apply for multiple CBILS loans if you own various companies. 

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Where can I apply for a second CBILS loan?

You can apply for a second (or first) CBILS loan using the Funding Options platform. To get started, tell us how much you’d like to borrow, what it’s for (e.g. working capital) and how quickly you need the funds.

As soon as you submit the initial information, our smart technology will compare 40+ accredited CBILS lenders and match you with the right finance options for your needs.

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If you’ve already received the maximum amount through a CBILS facility or aren’t eligible for one of the government’s loan schemes for whatever reason, you may still be eligible for another business finance option.

At Funding Options, we work with 120+ lenders specialising in different types of business funding. One of the benefits of applying for funding through us is that you gain access to expert help throughout the process to ensure you get the best deal. 

We've been selected by the government-owned British Business Bank as a designated platform to find finance for businesses. It’s free and doesn’t affect your credit score. 

Can I apply for a BBLS loan as well as a CBILS loan?

According to the British Business Bank who manages both schemes, you can’t take out a Bounce Back Loan Scheme facility if you’ve been approved for a CBILS facility, and vice versa. 

However, “a business that has a CBILS facility can apply for a Bounce Back Loan Scheme facility if the Bounce Back Loan Scheme facility will refinance the CBILS facility in full. 

“All accredited lenders who have approved CBILS loans so far will allow customers to refinance their loan into the Bounce Back Loan Scheme where appropriate, however, borrower protections under these schemes differ, and businesses should discuss these with their lender.”

What is the criteria for a CBILS loan?

You’ll have to meet various eligibility requirements to be eligible for a CBILS loan. These include (but aren’t limited to) the following:

  • Business must be UK-based 

  • Annual turnover can’t exceed £45 million

  • A borrowing proposal which the lender would consider viable, were it not for the current pandemic

  • Self-certification that the business had been negatively impacted by COVID-19

  • Not classed as a “business in difficulty” if borrowing £30,000+

As with any business loan, you’ll have to provide documentation when you apply. We’ll talk you through exactly what you need, but it may help to speed things along if you have the following to hand in advance:

  • Management accounts

  • Business plan

  • Historic accounts

  • Details of any assets

CBILS loans are unique because they come with a government-backed guarantee to encourage lending. The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.

It’s important to remember that as the borrower, you remain 100% liable for the debt. For loans under £250,000, you won’t be expected to provide a personal guarantee. 

Facilities above £250,000 may require a personal guarantee at the lender’s discretion, however recoveries are capped at 20% of the outstanding balance of the loan once the proceeds of business assets have been applied. A Principal Private Residence (PPR) cannot be taken as security.

Whether you’re ready to apply for your first CBILS loan, are eligible to take out a second facility, or seek an alternative finance option, we’re here for your business.

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Simon Cureton

Chief Executive Officer

Simon has been Chief Executive Officer at Funding Options since 2019, spearheading its transformation into a leading fintech with the launch of its Funding Cloud platform. Simon has over 27 years of experience in financial services, having held senior posts at some of the biggest players in the industry all over the world.

Business Finance

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