When your company enters liquidation, the Coronavirus Business Interruption Loan Scheme (CBILS) loan becomes a debt to be addressed like any other company liability. The liquidator will sell the company's assets to repay creditors, including the CBILS lender.  Although the loan is 80% government-guaranteed, this guarantee protects the lender, not you or the company; the company remains liable for the full loan amount until assets are realised. If you provided a personal guarantee for a CBILS loan over £250,000 (personal guarantees were not allowed for loans under £250,000), you may be personally liable for a portion of the debt if the company's assets are insufficient to repay it.  Misuse of CBILS funds or wrongful trading can lead to personal liability and potential disqualification as a director.