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Coronavirus Business Interruption Loan Scheme (CBILS)

Applications for the CBIL Scheme are open to existing business customers and accredited intermediaries only.

Who can apply?

  • Existing customers wishing to borrow between £50,001 and £500,000 can apply for term loan and asset finance facilities under the scheme​
  • Accredited intermediaries working with SMEs wishing to borrow between £50,001 and £500,000 can apply for asset finance facilities only under the scheme​

Paragon is an accredited member of the British Business Bank’s Coronavirus Business Interruption Loan Scheme (CBILS), designed to support UK SMEs during the Covid-19 outbreak.

The scheme enables Paragon to provide term loan and asset finance facilities to UK SMEs who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.

The Coronavirus Business Interruption Loan Scheme (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.​

Full details on CBILS and the list of participating CBILS lenders can be found on the British Business Bank website at:

www.british-business-bank.co.uk/CBILS

Who is the British Business Bank?

The British Business Bank is 100% Government owned but independently managed. It brings expertise and Government money to the smaller business finance markets. They don’t lend or invest directly, instead working with over 130 partners such as Paragon Bank.

Businesses apply for finance through partners who, because they work with the BBB, can lend and invest more - especially to younger and faster growing companies.

Paragon’s CBILS criteria

Paragon offers both term loan and asset finance facilities, to its existing SME customers and asset finance facilities to accredited intermediaries, through the CBILS on the following basis:

  • Terms up to 72 months
  • Minimum loan amount is £50,001
  • Maximum loan amount is £500,000
  • Your business was not in financial difficulty prior to the COVID-19 outbreak
  • Maximum number of employees is 250
  • Agreement types considered: asset finance and commercial loans only
  • No personal guarantees for facilities under £250,000
  • For facilities above £250,000, personal guarantees may still be required at our discretion

The Government will make a Business Interruption Payment to cover the first 12 months of interest payments.

Who is eligible to apply for the CBILS?

To be eligible for lending under the CBILS:

  • The application must be for business purposes and the business must have been adversely impacted by the Coronavirus (COVID-19)
  • The applicant must be a UK-based SME with an annual turnover of up to £45 million
  • The business must generate more than 50% of its turnover from trading activity
  • The business was not in financial difficulty prior to the COVID-19 outbreak
  • The CBILS-backed facility will be used to support trading primarily in the UK
  • The applicant wishes to borrow up to a maximum of £5 million

The following are not eligible under the CBILS:

  • Banks, insurers and reinsurers (but not insurance brokers)
  • Public sector bodies
  • State funded primary and secondary schools

PLEASE NOTE: Businesses are responsible for 100% of the full value of any facility supported by the CBILS.

How to apply?

Existing customers

Existing business customers can now apply for funding through the CBIL scheme for term loan and asset finance facilities between £50,001 and £500,000.

As part of your application you’ll need to provide supporting documents such as financial accounts, 3 months up-to-date bank statements and also complete a simple cashflow template or attach your own cashflow document.

Intermediaries

Accredited intermediaries can apply for funding through the CBILS scheme for asset finance facilities only between £50,001 and £500,000.

As part of the application process you’ll need to provide supporting customer documents such as financial accounts3 months up-to-date bank statements and also complete a simple cashflow template or attach your customers own cashflow document.

Additional help

The CBILS is just one of several measures announced by the Government. You can find full details of all Government support schemes available to businesses through this period of disruption here.

We offer finance to business customers only on an unregulated basis. Paragon Asset Finance Limited. Registered in England number 02189858. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ​

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551