So a lot of people whose businesses haven’t recovered are worried about what will happen if they liquidate and they can’t pay back the government loan.

If your company is facing liquidation and the loan remains unpaid – what is likely to happen and can you be made personally liable for the unpaid loan.

The 2 main schemes were the CBILS and the Bounce Back Loan.

Today I’m going to talk about the CBILS


If your business took a CBILS for under £250k, the banks were not permitted to ask for a personal guarantee, they may have requested other types of security though.

If your loan was over £250k you may have been required to sign one. If you did and your company is facing closure it’s important to remember that your min residence couldn’t be used as security and the bank can only look to recover 20% of the loan value that could be recovered from personal assets.

One of the key things that an insolvency practitioner will check is what the loan was spent on and that information wasn’t falsified on the application, if this has happened you could be facing some serious trouble.

If this issue is causing you distress or concern then get advice early.

Any questions please drop them in the comments or DM me.

Tomorrow I will be talking about Bounce Back Loans and personal liability.


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