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The Coronavirus Large Business Interruption Loan Scheme (CLBILS) – what you need to know

Find out the latest information about the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

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This page was updated on 25 September 2020. 

*The government has extended the deadline for new applications to 30 November 2020*

The CLBILS was announced on 3rd April 2020 and is a scheme that is designed to provide debt finance of up to £200m for larger businesses (with a turnover of more than £45m) across the UK, which are experiencing lost or deferred revenues as a result of the COVID-19 outbreak. The initiative supports a range of products from term loans and overdrafts to invoice finance and asset finance.  

Here is a link to the original government announcement. On 17 April, the Chancellor expanded the loan scheme and raised the cap from £25 million to £50 million. On 20 May, the loan was expanded once again, from 26 May larger businesses will be able to borrow up to a maximum of £200 million. More information can be seen here

On 24 September, the Chancellor extended the deadline for new applications to 30 November 2020.

What is it? 

  • Borrowers under CLBILS will be able to borrow up to 25% of turnover, up to a maximum of £200 million
  • Government will provide a guarantee of 80%
  • For firms with an annual turnover of over £45 million 
  • Lenders will still be expected to conduct their usual credit risk checks. This scheme allows lenders to specifically support businesses that were viable before the COVID-19 outbreak, but now face significant cash flow difficulties that would otherwise make their business unviable in the short term.
  • Businesses remain responsible for repaying any facility they take out
  • Businesses will pay a commercial rate of interest

Is my business eligible?

To be eligible your business must:

  • be UK-based in its business activity
  • have an annual turnover of more than £45 million 
  • be unable to secure regular commercial financing
  • 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 and secondary schools

The scheme opens on Monday 20 April 2020 and more information on its key features can be seen here.

 

This document is intended to be a summary of the CLBILS financial support package provided to larger businesses during the COVID-19 difficulties. It will be updated as soon as practically possible after new information is made available by Central Government and its partners, but we cannot be held responsible for errors and omissions that may occur. 

More information is available on the UK Government’s Coronavirus Business Support website. For more personalised advice call us on: 0161 237 4128 or email us at: BGH@growthco.uk 

 

 

The information provided is meant as a general guide only rather than advice or assurance. GC Business Growth Hub does not guarantee the accuracy or completeness of this information and professional guidance should be sought on all aspects of business planning and responses to the coronavirus. Use of this guide and toolkit are entirely at the risk of the user. Any hyperlinks from this document are to external resources not connected to the GC Business Growth Hub and The Growth Company is not responsible for the content within any hyperlinked site.

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