Many businesses have been discussing the challenges they’ve been facing with the CBILS. The most common complaints have been:

• Requirements for directors to put their homes or savings up as collateral.
• The need to demonstrate no other means of funding before accessing the CBILS.
• High interest rate charges following the initial 12-month interest-free period.

Improvements announced 3rd April 2020

In response the Chancellor has outlined the following changes, which can be retrospectively applied to any CBILS facilities offered since March 23:

• Lenders will no longer ask for personal guarantees for loans of under £250,000. For facilities above £250,000, personal guarantees may be taken, excluding the borrower’s Principal Private Residence, and capped at a maximum of 20% of the outstanding balance of the CBILS facility after the proceeds of business assets have been applied.
• You now don’t have to be disqualified from commercial lending in order to access CIBLS.
• Coronavirus Large Business Interruption Loan Scheme (CLBILS) has been announced to bolster support for larger firms with a turnover of between £45m-£500m wanting to borrow up to £25m.