CBILS — the Coronavirus Business Interruption Loan Scheme — was a pandemic-era government-backed scheme run through accredited lenders. It’s closed, but existing facilities continue on their agreed terms, repaid with interest, with your business fully liable. If you’re struggling, contact your lender early; refinancing (potentially under the Growth Guarantee Scheme) may help in some cases but must genuinely improve your position. Seek professional advice promptly if the business is in difficulty.
Key takeaways
- CBILS was a pandemic-era government-backed lending scheme, now closed.
- Existing facilities continue on their agreed terms — repaid in full with interest.
- The guarantee protected the lender, not you — your business remains liable.
- Personal guarantees could apply above a threshold; your main home couldn’t be taken.
- Refinancing may be possible under the Growth Guarantee Scheme — compare total cost.
- Contact your lender early and seek advice promptly if struggling.
Many established businesses are still repaying facilities taken out under CBILS — the Coronavirus Business Interruption Loan Scheme — and want to understand their position now: how repayment works, what to do if cash is tight, and whether refinancing could help. This guide explains what CBILS was, how repayment works today, and the options available to businesses managing this legacy debt.
What was CBILS?
CBILS — the Coronavirus Business Interruption Loan Scheme — was a UK government-backed lending scheme, administered by the British Business Bank, introduced during the pandemic to support businesses affected by the disruption. Like the wider family of government-backed schemes, it worked by giving accredited lenders a partial guarantee against the outstanding balance, encouraging them to lend. It supported larger, more individually assessed facilities than the standardised Bounce Back Loan Scheme.
How repayment works
CBILS facilities are repaid to the lender with interest over the agreed term. A government measure covered the first year of interest and certain fees at the outset, after which the business repays as normal. As with all the schemes, the government guarantee protected the lender, not the borrower — your business remains fully liable for repaying the loan in full with interest.
Personal guarantees under CBILS
Whether a personal guarantee applies depends on your facility and its size. Under the scheme, lenders could take personal guarantees above a certain threshold, but a borrower’s principal private residence could not be taken as security. Check your specific agreement to understand what, if any, guarantee applies to your facility and what your exposure is.
CBILS vs Bounce Back Loans
| Feature | CBILS | Bounce Back Loan |
|---|---|---|
| Facility size | Larger | Smaller, standardised |
| Assessment | More like normal lending | Streamlined |
| Personal guarantees | Possible above a threshold | Not permitted |
| Main home as security | Could not be taken | Not applicable |
If you are struggling to repay
As with any borrowing, the key step is to contact your lender early. Lenders can often help a business that flags difficulty in advance — far more than one that simply misses payments. If the difficulty is more serious, seek free, impartial debt advice or professional insolvency advice promptly. Acting early protects your options and your credit position.
If repayments are becoming unmanageable, talk to your lender before you miss a payment, and get professional advice early — it gives you the most options.
Could refinancing help?
Refinancing your CBILS facility — potentially under the current Growth Guarantee Scheme — may be possible in some circumstances, subject to the scheme rules, the lender’s assessment and any early-repayment terms on your existing loan. It can help by consolidating debt or improving cash flow, but it restructures rather than reduces what you owe, and a longer term can increase total cost. Compare the total cost of any new facility against your existing one carefully before proceeding.
Prioritising your debts
When cash is limited, take a view across all your borrowing rather than treating CBILS in isolation. Prioritise the most expensive or most pressing debt, considering rate, term and flexibility. If you are unsure how best to allocate cash flow, professional advice can help you make sound decisions.
What replaced CBILS?
CBILS was followed by the Recovery Loan Scheme and then the current Growth Guarantee Scheme, each continuing the partial-guarantee model as the focus shifted from crisis response to recovery and then growth. If you want new government-backed finance today, the Growth Guarantee Scheme is the route, accessed through accredited lenders.
The bottom line
CBILS was a pandemic-era government-backed scheme that is now closed, but existing facilities continue on their agreed terms, repaid with interest, with your business fully liable. If repayments are a challenge, contact your lender early and seek advice promptly; refinancing under the Growth Guarantee Scheme may help in some cases but must genuinely improve your position after costs. Understanding where CBILS sits — and your options now — puts you in control of this legacy debt.
Frequently asked questions
What was CBILS?
CBILS — the Coronavirus Business Interruption Loan Scheme — was a UK government-backed lending scheme administered by the British Business Bank during the pandemic. It gave accredited lenders a partial guarantee to support lending to businesses affected by the pandemic.
Is CBILS still open?
No. CBILS is closed and has been succeeded by later schemes, culminating in the current Growth Guarantee Scheme. Existing CBILS facilities continue under their agreed terms.
How do CBILS loan repayments work?
CBILS facilities are repaid to the lender with interest over the agreed term. A government measure covered the first year of interest and certain fees at the outset, after which the business repays as normal. You remain fully liable for the debt.
Am I personally liable for a CBILS loan?
Whether a personal guarantee applies depends on the facility and amount, as lenders could take guarantees above a certain threshold under the scheme, though a borrower’s principal private residence could not be taken as security. Check your specific agreement.
Does the government guarantee mean I don’t have to repay CBILS?
No. The guarantee protected the lender, not the borrower. Your business remains fully liable to repay the CBILS loan in full with interest. The guarantee does not write off your debt.
What if I am struggling to repay my CBILS loan?
Contact your lender as early as possible to discuss options. Lenders can often help a business that flags difficulty in advance. If the difficulty is serious, seek free, impartial debt advice or professional insolvency advice promptly.
Can I refinance my CBILS loan?
Refinancing may be possible in some circumstances, potentially under the Growth Guarantee Scheme, subject to the rules, the lender’s assessment and any early-repayment terms. Whether it helps depends on the new total cost, so compare carefully.
Can I repay my CBILS loan early?
Early repayment terms depend on your facility. Some allow penalty-free early settlement; others may apply a charge. Check your agreement before overpaying, and weigh the interest saved against keeping cash available.
How is CBILS different from a Bounce Back Loan?
Bounce Back Loans were smaller, standardised facilities with a low fixed rate and no personal guarantees. CBILS supported larger facilities, assessed more like normal lending, and could involve guarantees above a threshold. Both were government-backed during the pandemic.
What replaced CBILS?
CBILS was followed by the Recovery Loan Scheme and then the current Growth Guarantee Scheme. Each continued the partial-guarantee model, with the focus shifting from crisis response to recovery and then growth.
Will my CBILS loan affect my credit?
The facility and your repayment conduct are recorded like any business borrowing, and missed payments can harm your profile. Managing repayments well protects your credit and supports future borrowing.
Should I prioritise repaying CBILS over other debt?
It depends on the relative cost and terms of your debts. Take a view across all your borrowing rather than in isolation, and prioritise the most expensive or pressing debt. Seek advice if you are unsure.
What happens if my business cannot pay its debts?
The position is complex and directors have legal duties. Seek professional insolvency and legal advice promptly. The guarantee compensates the lender for part of its loss but does not remove the business’s liability.
Can a broker help with my CBILS debt?
A broker can help you explore refinancing across accredited lenders and compare total cost against your existing facility. For businesses in genuine difficulty, professional debt or insolvency advice may also be appropriate.
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