From this week, companies are now able to apply for the Coronavirus Large Business Interruption Loan Scheme (CLBILS). Specifically, the new scheme provides funding to mid-sized and large UK businesses with turnover above £45m – the upper cap for the existing smaller-business focused Coronavirus Business Interruption Loan Scheme scheme (CBILS).
Under the scheme, a qualifying business can access up to £50m of financing if turnover is over £250m and £25m if turnover is less than £250m. All facilities are supported with a government-backed partial guarantee for the loan repayments, interest and fees. The initiative aims to encourage greater lending and financial support to UK businesses that have seen their income and cash flow disrupted by the crisis.
This additional measure follows a range of significant announcements to support businesses through this unprecedented period – a summary is provided below. To expedite access to this support, the government has decided to channel these measures through 40 accredited lenders, including all the major UK banks.
The British Business Bank (BBB), which manages the CBILS and CLBILS schemes, is accepting applications for new lenders to join and Investec has applied to become an accredited financial institution. However, in the interim, if you require funding under the programmes, you should contact your relationship bank.