What is it?
UK government will provide a guarantee of 80% to enable banks to make loans to firms with turnover of more than £45 million of up to £200 million. Companies borrowing more than £50m through CLBILS will be subject to restrictions on dividend payments, senior pay and share buy-backs during the period of the loan. The maximum size for invoice finance and asset finance facilities under the scheme is £50m. Facilities will be available from 3 months up to 3 years and will be offered at commercial rates of interest. The scheme will be delivered through commercial lenders.
Businesses will be given until the end of March 2021 to access the Coronavirus Large Business Interruption Loan Scheme. Further information can be found here.
Am I eligible?
Your business must:
- Be UK-based in its business activity
- Have an annual turnover of more than £45 million
- Have a borrowing proposal which the lender would consider viable, were it not for the current pandemic, and for which the lender believes the provision of finance will enable the business to trade out of any short-term to medium-term difficulty
- Self-certify that it has been adversely impacted by the Coronavirus.
- Not have received a facility under the Bank of England’s Covid Corporate Financing Facility (CCFF).Covid-19 Corporate Financing Facility (CCFF)
Lenders will need further information to confirm eligibility. All lending decisions remain fully delegated to the accredited lenders.
The borrower remains fully liable for the debt.
What do I need to do to access it?
A guide how to apply can be found here.
An FAQ on CLBILS can be found here.
Who do I need to speak to?
You should speak to your business banking provider or one of the accredited lenders. With high demand for CLBILS facilities, finance providers recommend that you approach a lender via their website. Phone lines are likely to be busy and branches may not be able to handle enquiries in person.