Please note this article was published on 17th April 2020 and may be out of date. For the latest information about financial support around Coronavirus, please click here
The newly launched Coronavirus Large Business Interruption Loan Scheme (CLBILS) provides financial support to mid-sized and larger UK businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.
The scheme is a part of a wider package of government support for UK businesses and employees. Read more at the Government’s Business Support website.
Specifically, it facilitates access to finance for businesses with a turnover above £45 million, the upper limit for the existing smaller-business focused Coronavirus Business Interruption Loan Scheme (CBILS).
How it works
CLBILS will be available through a range of British Business Bank accredited lenders and partners, which will be listed on the British Business Bank website.
A lender can provide:
– up to £25 million to businesses with turnover from £45 million up to £250 million
– up to £50 million to businesses for those with a turnover of over £250 million
Finance is available in the form of:
– term loans
– revolving credit facilities (including overdrafts)
– invoice finance
– asset finance
CLBILS gives the lender a government-backed partial guarantee (80%) against the outstanding balance of the facility.
The borrower remains fully liable for the debt.
Under the scheme, personal guarantees of any form will not be taken for facilities below £250,000.
For facilities above £250,000, personal guarantees may still be required, but claims cannot exceed 20% of losses after all other recoveries have been applied.
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