Expanded Coronavirus Large Business Interruption Loan Scheme (CLBILS) to launch Monday 20 April
The Chancellor has announced that the Coronavirus Large Business Interruption Loan Scheme (CLBILS) will launch on Monday 20 April 2020 and, in a change of policy, will be open to businesses with turnovers of more than £500 million.
Businesses turning over more than £45 million will be able to apply for facilities of £25 million, while those with turnover greater than £250 million will be able to apply for facilities of up to £50 million.
The scheme had previously been limited to businesses with turnovers of no more than £500 million. The expansion of CLBILS means that some larger businesses that have an Investment Grade rating will be able to choose between CLBILS and the Bank of England’s Covid Corporate Financing Facility (CCFF).
As with the Coronavirus Business Interruption Loan Scheme (CBILS) for businesses with turnovers of up to £45 million, CLBILS facilities will be backed by an 80 per cent Government guarantee. However, unlike CBILS, CLBILS facilities will otherwise be on normal commercial terms and will not include a 12-month interest-free period.
The maximum repayment term for CLBILS facilities is three years.
CLBILS facilities are available from a panel of more than 40 lenders accredited by the British Business Bank.
Contact us today for more information on the Government support available to businesses during the coronavirus outbreak.