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The Coronavirus Large Business Interruption Loan Scheme (CLBILS) goes live and new future fund announcement

The Coronavirus Business Interruption Loan Schemes and Fund (CLBILS), is designed to support UK businesses that are losing revenue and seeing their cashflow disrupted as a result of the COVID-19 outbreak.

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) was announced by the Chancellor of the Exchequer on Thursday, 16 April 2020.

The new scheme provides finance to mid-sized and larger UK businesses with turnover above £45m (which is the upper limit for the existing smaller-business focused CBILS).

CLBILS can help provide facilities of up to £25m for businesses with turnover from £45m up to £250m, and facilities of up to £50m for those businesses with a turnover of more than £250m who are suffering disruption to their cashflow due to lost or deferred revenues during the Covid-19 outbreak.

The scheme will be operational with lenders from Monday 20 April 2020.

Scheme features

The Coronavirus Large Business Interruption Loan Scheme supports term loans, revolving credit facilities (including overdrafts), invoice finance and asset finance facilities. It is designed to give lenders greater confidence to provide funding by providing a partial guarantee of 80% of the outstanding facility balance.

  • Up to £50m facilities: up to £50m for those with a turnover of over £250m, and of up to £25m for businesses with turnover from £45m up to £250m.
  • 80% guarantee: The scheme provides the lender with a government-backed, partial guarantee (80%) against the outstanding facility balance.
  • Finance terms: Finance terms are from three months to three years.
  • Economic benefits go to the borrower: Borrowers will benefit from a proportionate reduction in pricing as a result of lenders receiving capital and risk benefits.
  • Personal guarantees: No personal guarantees are permitted for facilities under £250,000. For facilities of £250,000 and over, claims on personal guarantees cannot exceed 20% of losses after all other recoveries have been applied.
  • The borrower always remains 100% liable for the debt.

Find out more about The Coronavirus Large Business Interruption Loan Scheme at: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/clbils/