Government-owned development bank, the British Business Bank, has revealed that the recently announced Coronavirus Business Interruption Loan Scheme (CBILS) will be made available to UK brokers, but not to insurers or reinsurers.
CBILS is a new scheme announced last week by Chancellor Rishi Sunak to help support businesses whose operations have been affected by the coronavirus (COVID-19) outbreak.
It can provide facilities of up to £5m for smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.
However, new information on CBILS shows that insurers and reinsurers are counted among the list of trades and organisations that will not be eligible to apply.
Other sectors on the exclusion list include banks and building societies, as well as state funded primary and secondary schools, and employer, professional, religious or political membership organisation or trade unions.
CBILS is designed to support a range of business finance products, including term loans, overdrafts, invoice finance and asset finance.
The maximum value of a facility provided under the scheme will be £5m, available on repayment terms of up to six years.
The scheme also provides the lender with a government-backed, partial guarantee (80%) against the outstanding facility balance, subject to an overall cap per lender.
The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will not incur upfront costs and will have lower initial repayments.