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What’s the Difference Between CBILs and BBL?

The Coronavirus Business Interruption loan scheme (CBILs) and Bounce Back Loan (BBL) are both designed to help SME businesses throughout the Covid-19 situation. They are very two different schemes and its important the business owners understand the difference in the scheme as you can only access one scheme.

Whilst you can convert a CBILs (under £50k) into a BBL you cannot increase the amount of lending once you have applied or apply for an additional loan through either of the schemes.

CBILS currently has over 60 accredited lenders, covering a range of products, the new BBL currently has 14 accredited lenders but new ones are being added all the time. Just like CBILS that started out at 40. If your lender is not part of the scheme then don’t worry contact us to help find a suitable lender

What’s common between the schemes?

Both schemes offer

  • No Guarantee fee for the business to pay
  • The Government will make a business interruption payment to cover the first 12 months interest

That’s where the similarities stop….

So what the main differences between the schemes?

Guarantee (Government to Lender) Partial guarantee 80% Full 100% guarantee
Types of facility available Term Loans, Overdraft, Invoice Finance, Asset Finance Term loan only
Maximum Lending amount £5mil £50,000*
Minimum Lending amount £50,001 £2,000*
Interest rate and fees Set by the lender and dependant on the individual case 2.5% fixed per annum

No fees

Repayment Term six years for term loan and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years. six years – but no additional fees for early repayment
Refinancing Available for a maximum of 20% of the facility No restrictions
Personal Guarantees No PG’s for facility below £250,000 No PG’s

*Bounce Back loans are limited to 25% of your annual turnover for 2019 if trading or projected income if trading for less than a year.

Further FAQ’s can be found on the British Business Banks website

Should I apply for CBILS or BBL?

The first thing to do is to review your cash flow forecast and understand what your business needs (if anything) during this time. Base it on a scenario that there is no or reduced sales for the next 6 months. Then also check the support being offered by the government such as furlough schemes, grants, VAT deferral etc.. and input these into the cash flow model. You can find out more about the schemes available for your business by using the governments support finder tool.

This will then give you an indication of how much additional funding you need for your business over the coming months.

CBILS is too slow should I just apply for a BBL?

CBILS has been slow to launch with the mainstream banks but with a number of new lenders becoming accredited the process for CBILS is improving and the speed of decisions also improving. Whilst BBL was designed to be quick and for amounts below £50k is the route available, businesses however shouldn’t be lowering their amount and applying for the £50k when they realistically needs more. Once you have applied for a BBL you can not amend the amount or take out an additional BBL or CBILS so its important to understand what your business needs and apply for that amount.

How can J&J Commercial Finance help?

As we work with a number of accredited lenders we can help business in a number of ways. With our clients we go through a 3 stage process

3 stage process flow for business support for website J&J Commercial Finance


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