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Coronavirus Large Business Interruption Loan Scheme (CLBILS)

Available: CLOSED

A new Coronavirus Large Business Interruption Loan Scheme, delivered by the British Business Bank.

Enabling businesses to apply for a loan of up to £25 million (in some cases up to £50 millon, see below), with the Government covering up to 80% of any losses.

The new scheme will launch later this month and will support a wide range of businesses to access finance products including short term loans, overdrafts, invoice finance and asset finance.

Please note – the borrower always remains 100% liable for the debt.

For more information see here.

Maximum Loan:

£25 million. Companies with a turnover of more than £250 millon will be able to apply for up to £50 millon of finance.

Interest Rates and fees:

Details to be announced - expected commercial rates of interest.

Unlike CBILS the Government will not cover interest and any lender levied fees in the first 12 months of any CLBILS facility.

Guarantee:

80% Government-backed against the outstanding facility balance, subject to an overall cap per lender. The borrower remains 100% liable for the debt.

Security:

The British Business Bank has stated that borrowers should expect a lender to follow its normal credit policy when assessing security generally.

However:
 
  • 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 other recoveries have been applied.

Repayments:

From 3 months to 3 years.

Provided by:

Available through a range of accredited lenders, which will be listed on the British Business Bank website.

Eligibility:

  • be UK-based in its business activity
  • have an annual turnover over £45 million
  • self-certify that the business has been adversly impaced by Corornavirus
  • Not have received a facility under the Bank of England's Covid Corporate Financing Facility
  • the turnover of the business must generate more than 50% of its turnover from trading activity
  • have a borrowing proposal which the lender:
    • would consider viable, were it not for the COVID-19 pandemic
    • believes will enable you to trade out of any short-term to medium-term difficulty

Businesses from any sector can apply, except for the following:

  • banks and building societies
  • insurers and reinsurers (but not insurance brokers)
  • public-sector organisations, including state-funded primary
  • secondary schools
  • trade unions
  • employer, professional, religious or political membership organisations
  • credit institutions (falling within the remit of the Bank Recovery and Resolution Directive)

Parameters of CLBLIS

The amount borrowed should not be greater than one of the following:

  • double the borrower's annual wage bill for the most recent year available;
  • 25% of the borrower's total turnover for the most recent year available; or
  • the amount may be increased to cover their liquidity needs for the next 12 months, with appropriate justification and based on self-certification of the borrower.
How to apply

The scheme is now open and available through a series of accredited lenders listed on the British Business Bank website.

Consider applying via the lender’s website in the first instance. Telephone lines are likely to be busy and branches may have limited capacity to handle enquires due to social distancing

Lenders are still expected to conduct their usual credit risk checks, but this scheme allows them to specifically support business that were viable before the COVID-19 outbreak, but are facing significant cash flow difficulties, that would otherwise make their business unviable in the short term.

Information required

Specific information required to be announced.

Examples of information expected may include;
 
  • Amount – how did you come to this amount?
  • How long with this cover your business for?
  • Term of the loan
  • Purpose – details required
  • Asset and Liabilities form for each Director required
  • Business plan with viable support
  • Cash flow forecast
  • List of creditors and debtors showing amounts owed and owing
  • Last 3 years accounts
  • Management information since the last statutory accounts date
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