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Coronavirus Loan Schemes

Support for your business

During these unprecedented times, businesses up and down the UK are facing significant challenges as revenues dry up and cashflows come under pressure.

We want to reassure our commercial clients that we're here to help support their businesses whenever possible, and particularly when they need us most.

One of the most important ways for us to do this is to make available debt facilities as supported by the government for UK based businesses. We are now accredited with the British Business Bank for the 3 main schemes, as follows:

  • Coronavirus Business Interruption Loan Scheme (CBILS) – for small to medium-sized UK based businesses with turnover up to £45m p.a.
  • Coronavirus Large Business Interruption Loan Scheme (CLBILS) - for mid-sized and larger UK based businesses with turnover greater than £45m p.a.
  • Bounce Back Loan Scheme (BBLS) – for UK based businesses requiring smaller Covid related debt support between £2,000 and £50,000.

Please see below for more details on each Scheme to help you decide which one may be right for your business.

Coronavirus business interuption Loan Scheme (CBILS)


What IS CBILS?

CBILS is a government-backed scheme that provides financial support to viable SMEs that are losing revenue and experiencing cashflow pressures because of the coronavirus. The loans are available for terms of up to six years and include a standard 12-month capital repayment holiday. The first 12 months are interest free as the government pays the interest for you during that time.

The scheme is designed to support businesses that were trading successfully before coronavirus but now face difficulty as a result of the current disruption.

The UK government provides banks with a guarantee for 80% of the loan, but the borrower remains liable for 100% of the outstanding debt.

 

WHICH BUSINESSES CAN APPLY?

UK-based businesses with total turnover of up to £45 million a year are eligible for the scheme. CBILS has been designed to ensure that appropriate government support can be provided within a short time-frame to help businesses manage the impact of the coronavirus outbreak.

It will be available for new lending requests only, made directly as a result of the coronavirus impact, and will not cover existing facilities we may have agreed with you under normal banking terms and conditions before the Covid-19 outbreak.

 

DOES IT APPLY TO ALL SECTORS?

Almost all business sectors can access CBILS. Some different terms will apply for a small number of areas, including for some agriculture and aquaculture businesses.

Please note: The following are not eligible under CBILS: 

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

 

WHICH COUTTS PRODUCTS ARE AVAILABLE THROUGH CBILS?

CBILS will be offered as a loan, linked to the Coutts base rate and in sterling only.

 

HOW MUCH CAN I BORROW?

We will provide CBILS-supported loans for amounts ranging from £50,001 to £5m.

 

HOW LONG DO I HAVE TO PAY THE LOAN BACK?

CBILS loans are available for terms of up to six years and include a standard 12-month capital repayment holiday. The interest over the first 12 months is paid by the government, and there is no penalty for early repayment.

 

CAPITAL REPAYMENT HOLIDAY and INTEREST-FREE PERIOD

The UK government will pay interest for the first 12 months of the agreement. Also, you don't have to make any capital repayments during the 12-month capital repayment holiday. This means more capital will be outstanding for longer so you'll pay more interest over the full term than if you didn't take the capital repayment holiday. But you can make extra capital repayments which would reduce the overall interest costs over the full term.

 

SECURITY REQUIREMENTS

Lenders are expected to follow their normal security requirements.

We have decided that we will not seek new, or increased, personal guarantees for any debt requested under the scheme. This goes above and beyond the UK government’s requirement that guarantees aren’t sought for debt requests of up to £250,000.

Any security required will be restricted to business assets only.

These arrangements will have no impact on any existing debt facilities we may have agreed with you, which will continue on the same terms.

 

HOW LONG WILL CBILS BE AVAILABLE?

CBILS will remain in place until the end of September 2020. But this may be extended by the government which has said there is no maximum limit set for the amount of total lending supported through the scheme.

There is therefore no immediate need to approach lenders if you do not need finance in the short term.

 

WHAT OTHER FORMS OF GOVERNMENT SUPPORT ARE AVAILABLE?

Please see the government support website for details.


IS MY BUSINESS
ELIGIBLE?

To be eligible for CBILS, your business must:

  • be UK-based, with group turnover of no more than £45m per annum
  • generate more than 50% of its turnover from trading activity
  • be applying for business purposes and primarily to support trading in the UK
  • operate within an eligible industrial sector – there are a considerable number of sectors eligible to participate but a small number are not
  • be considered viable over the longer term, notwithstanding any coronavirus impacts over the short-to-medium term

For more information, please visit the British Business Bank website

 

Please note that Coutts Commercial provides business banking facilities to the private clients of Coutts.

Whilst we’re doing everything we can to help all of our clients, given the huge demand for CBILS from our existing business clients, we’re unfortunately unable to take applications from new commercial clients at the present time.

We’ll reassess our capacity regularly, but if your current bank is offering CBILS, it’ll be faster for you to apply through them.


What we need from you TO APPLY

All accredited lenders are required to assess each application to ensure that the business applying is viable and has the potential to trade out of any short-term or medium-term difficulty.

We are also required to confirm that the purpose of the debt request is for a suitable business purpose and meets the intention of the CBILS scheme.

To support this, you will need to provide the following information, plus anything else that may help us assess your application quickly:

  • your last set of historic, audited accounts, including balance sheet and profit & loss statements
  • your most recent management accounts, ideally covering the 2019 performance year
  • a brief update on the performance of your business before the onset of the virus
  • a cashflow forecast showing how much you need to borrow looking ahead at least 12 months, ideally with a forecast for future years covering the whole term of the requested loan.  

The cashflow forecast should demonstrate the impact of any other liquidity remedies on offer, including the Job Retention Scheme, rates relief and VAT deferral, and any capital repayment holidays agreed on existing loans.

This cashflow forecasting tool may be helpful.

  • your business plan and/or any key assumptions or risk factors which may impact the above
  • details of the business assets you own, schedules of hire purchase or third-party finance commitments (including current balances, repayment commitment details and expiry dates)

Using this information, we will assess whether the amount requested is in line with the trading history of the business and reflects the expected period of disruption, which we are currently taking to be three-to-six months.

We will base your business performance in 2021 and 2022 on your performance before the onset of coronavirus. We will need you to outline any longer-term impacts which may mean this is not appropriate.


READY TO APPLY?

Please download the forms you will need to complete:

1.  A ‘Fact Find’ form to assess business performance

2.  An application form to provide further details about the business and the funding needed

3.  Data disclosure to grant permission to share information with the British Business Bank

 If you don’t have this software you can download it for free here. If you have any queries, or are having any problems completing this form, please contact your commercial or private banker.

 

Start your application

 

There are several ways to sign the documentation and return it to us:

  • Complete the documentation by typing directly into the form fields using Adobe Acrobat Reader. If you don’t have this software you can download it for free here.  
  • Scan or take a photograph of the completed documentation, which you’ve ‘wet ink’ signed.
  • Send the document to your banker via our secure messaging service within Coutts Online (details of how to do this can be found here). Alternatively, if you’re not registered for Coutts Online, please email it to your banker.   
  • If you’re unable to ‘wet ink’ sign the documentation, please include the following wording within your secure message or email:

 Please find attached the CBILS application form, fact find and data disclosure. By this email, I confirm that:

I am duly authorised to sign the Documents on behalf of [insert name of signing entity]

By sending you this email and by inclusion of my full email signature footer below, you may consider the Documents to be duly signed and executed for and on behalf of [insert name of signing entity] for all purposes.

 

If you have any queries, or are having any problems completing this form, please contact your commercial or private banker.

coronavirus large business interruption loan scheme (CLBILS)

Supporting bigger businesses through lockdown


What is CLBILS?

CLBILS is a government-backed scheme that provides financial support to large and mid-sized businesses that are losing revenues or experiencing cashflow pressures because of the coronavirus. Coutts is an accredited provider of the scheme.

The UK government provides banks with a guarantee for 80% of the loan, but the borrower remains liable for 100% of the outstanding debt.

You can find more information at the British Business Bank website.

 

How much could I borrow?

CLBILS supported loans are available for businesses with turnover over £45 million. The amount of the loan should be based upon your liquidity needs for the next 12 months. The maximum amount we will lend is £50 million.

 

How long do I have to pay the loan back?

CLBILS loans are available for terms of up to three years and include a 12-month capital repayment holiday. This means you don’t have to pay off any of the loan over the first year, although you do still pay the interest during that period.

More capital will be outstanding for longer, so you'll pay more interest over the full term than if you didn't take the capital repayment holiday. But you can make extra capital repayments to reduce the overall interest costs.

 

THE FOLLOWING ARE NOT ELIGIBLE:

Almost all business sectors can apply for CLBILS.  The following are not eligible to apply: 

  • Credit institutions (falling within the remit of the Bank Recovery and Resolution Directive)
  • Building societies, insurers and reinsurers (but not insurance brokers)
  • Public sector bodies
  • State-funded primary and secondary schools

    Further information can be found on the CLBILS pages on the British Business Bank website

 

Is my business eligible?

To be eligible, your business must:

  • be UK-based, with group turnover of more than £45 million
  • be directly impacted by coronavirus
  • not have used the Bank of England’s Covid Corporate Financing Facility (CCFF)
  • have been trading successfully before the coronavirus outbreak, and be considered viable over the longer term

 

My business turnover is less than £45 million. Can I get any support?

Businesses with a turnover of less than £45 million may be eligible for the equivalent government scheme for smaller enterprises – the Coronavirus Business Interruption Loan Scheme (CBILS). Coutts is also an accredited provider of that initiative and you can find out more information in the other tabs on this page.

 

How to apply for CLBILS

Please download this brochure which provides the relevant forms, which are:

  • an application form to provide further details about your business and the funding you need
  • a data disclosure agreement to grant permission for us to share your information with the British Business Bank

START YOUR APPLICATION

 

Returning the forms

Here are the options for signing the documents and returning them to us:

1) Complete the documentation by typing directly into the form fields using Adobe Acrobat Reader. If you don’t have this software you can download it for free here.  

2) Scan or take a photograph of the completed documentation, which you’ve ‘wet ink’ signed.

Once complete, send the document to your banker via our secure messaging service within Coutts Online (details of how to do this can be found here). Alternatively, if you’re not registered for Coutts Online, please email it to your banker.  

If you’re unable to sign via these methods, please contact your commercial banker.

 

Next steps

After receiving your application, your commercial banker will get in touch to talk through next steps. As part of this, you will also ultimately need to provide:

  • a financial forecast covering a minimum 12-month period, which includes full details of the underlying assumptions applied to estimate your total cash requirement and the amount you’re seeking to borrow
  • a summary of the actions you’ve already taken, or are considering, to mitigate the coronavirus impact, and details of the extent to which you’ve explored other areas of funding or government support
  • if available, a copy of your business plan or strategy formed in response to coronavirus

You will also need to complete an undertaking in difficulty declaration form.

If you have any questions or would like to discuss this further, please contact your commercial banker.

Bounce Back LOAN SCHEME (BBLS)

Coronavirus business support

 

What is BBLS?

The Bounce Back Loan Scheme is a government initiative to support small and medium-sized businesses that are losing revenues because of the coronavirus.

The UK government provides banks with a guarantee for 100% of the loan, but the borrower remains liable for all the debt.

 

How much could I borrow?

We could provide BBLS supported loans for amounts from £2,000 to £50,000 (up to a maximum of 25% of your business turnover).

The amount of the loan should be based on your extra liquidity needs as a direct result of the impact COVID-19 has had on your business.

 

How long do I have to pay the loan back?

BBLS are available for a fixed, six-year loan term. Interest is fixed at 2.5% for the duration of the loan, with no early repayment fees if you want to pay it off sooner.

A 12-month capital repayment holiday is automatically applied at the start of the loan, but you can choose to make repayments at any time. If you decide to take the capital repayment holiday, it means more capital will be outstanding for longer, so you'll pay more interest over the full term. But you can make extra capital repayments which would reduce the overall interest costs.

The loan interest is paid by the government for the first 12 months, then by you for the remainder of the loan term.

 

Which sectors are eligible?

Almost all business sectors can apply for BBLS, but the following are excluded:

  • Credit institutions (falling within the remit of the Bank Recovery and Resolution Directive)
  • public sector bodies,
  • state-funded primary or secondary schools
  • insurance companies

Is my business eligible? 

You may be eligible if:

  • you are an existing business client with Coutts
  • you’re a UK resident with a business, or a registered charity based in the UK
  • your business was established before 1 March 2020
  • you can certify that your business has been adversely impacted by COVID-19

You won't be eligible if:

  • you already have a Bounce Back Loan. You can only apply for one loan through the Bounce Back Loan Scheme, and you won't be able to increase the loan amount once it's been approved
  • you already have a Coronavirus Business Interruption Loan, Coronavirus Large Business Interruption Loan, or benefit from the Bank of England's Covid Corporate Financing Facility
    If you have an existing Coutts Coronavirus Business Interruption Loan that you want to transfer to a Bounce Back Loan, please contact your commercial banker.
  • you’re a bank, insurer, reinsurer (but not insurance broker); public-sector body; grant-funded further education establishment; or state-funded school
  • your business is subject to collections or collective insolvency proceedings

 

How to apply

Please click below to start your application. We will then provide you with an application form which you can electronically sign and return.

Find out more here about what you can expect from us as a lender under the Bounce Back Loan Scheme. If you have any questions or would like to discuss this further, please contact your commercial banker.
 

Start your application


Important information:

The Bounce Back Loan Scheme is provided through a government scheme and does not benefit from the same level of consumer protection as our other loans. If you are in any doubt about whether this loan is right for you, you should take legal advice.

 

The Bounce Bank Loan Scheme (BBLS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS). British Business Bank plc is wholly owned by HM Government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). Full details on BBLS and the list of participating lenders can be found on the British Business Bank website: www.british-business-bank.co.uk

 


Financial institutions

There are no restrictions under the scheme rules relating to financial institutions applying for a bounce back loan.  However, ring fenced banks are prohibited from entering into certain types of transactions with financial institutions. Broadly speaking, the term “financial institution” includes investment firms, alternative investment fund managers, structured finance vehicles, credit institutions, certain types of insurance companies, UCITS funds and financial holding companies. 

Ring fenced banks include Barclays Bank (UK) PLC, Clydesdale Bank PLC, Virgin Money PLC, HSBC Bank (UK) Limited, Lloyds Bank Plc, Bank of Scotland Plc, National Westminster Bank Plc, Royal Bank of Scotland plc, Coutts & Company, Ulster Bank Ltd, Santander UK Plc and TSB Bank plc.

 

In line with the requirements of the Bounce Back Loan Scheme, we set out below information in respect of our relationship with you and matters we have agreed to address during the life of your Bounce Back Loan:

  • We will monitor your repayment record during the life of your Bounce Back Loan and take action to help you where there are signs of actual or possible repayment difficulties.
  • If we identify that you might be vulnerable, we will make appropriate adjustments to ensure that your circumstances are accommodated throughout the duration of your Bounce Back Loan.
  • If you default under your Bounce Back Loan, we will give you a reasonable period to remedy any breach and we will not treat the default as an event of default if it is remedied within this period.
  • We will not require you to pay any fees of any description (including on default) or any default interest (except if the Bounce Back Loan is not repaid when due we may continue to charge interest at 2.5% per annum until such time as it is repaid).
  • We will give consideration to your information needs once you have a Bounce Back Loan with us and provide information to you in a way which is clear, fair and not misleading.
  • We will provide you with information on your right to repay a Bounce Back Loan before your Bounce Back Loan is binding on you.
  • We will provide you with information on the risks of non-repayment of your Bounce Back Loan, including the impact on your credit file before your Bounce Back Loan is binding on you.

We also agree to provide you with the following information during the life of your Bounce Back Loan:
  

1. timely, clear and adequate information that will help you to understand that, if you fail to make payments under your Bounce Back Loan, the amount missed, what can be done to remedy, in what timescales, and the impact (if any) on your future repayments;

2.  if you default, we will give you information about any proposed action we might take in respect of your Bounce Back Loan, prior to taking such action;

3. regular information about your Bounce Back Loan (on at least an annual basis) in the form of a statement setting out details of the payment transactions on the Bounce Back Loan during the period since such information was provided (or the Initial Drawdown Date, if no such information has been provided previously) and amounts outstanding under the Bounce Back Loan; and

4. information on options available to you for help and assistance, including sources of free independent advice.

 

Complaints

At Coutts, we ensure we’re always working at the top of our game. But we never rest on our laurels. We know that sometimes we get things wrong.

When we do, we’d like you to tell us so we can put things right and support you better.

Click here to find out how to make a complaint. Click on the drop-down menu and select ‘Coutts complaints handling policy
 

Security may be required. Over 18s only. Business use only. Subject to status. Exclusions may apply.

Any property or asset used as security may be repossessed or forfeited if you do not keep up repayments on any debt secured on it.

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