Coronavirus LARGE Business Interruption Loan Scheme (CLBILS)

by | Apr 20, 2020

Today we saw the launch of CLBILS.  The Coronavirus Large Business Interruption Loan Scheme will provide support to mid-sized and larger UK businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.  (This article is a summary of our understanding of the scheme and full details are available on the British Business Bank website) 

Specifically the scheme facilitates access to finance for businesses with a turnover above £45m pa who have not received a facility under the Bank of England’s Covid Corporate Financing Facility. 

The Scheme will operate through designated lenders however those accredited lenders are not yet detailed on the website. We expect the lenders details to be set out later this week and we are expecting this to be many of the major UK banks.  However, not every lender will be able to provide every type of finance available under CLBILS. 

Businesses wishing to access the scheme will be required to complete an application and we expect the forms to be made available by the various banks later this week. 

Who is eligible and how does it work?

Providing the business is UK based and has an annual turnover above £45m most business sectors are eligible to apply.

 How it works: 

  • A lender can provide up to £25m to businesses with an annual turnover from £45m up to £250m.
  • Up to £50m to businesses with an annual turnover of over £250m. 

The lender will check that it’s for a suitable business purpose and the right type of finance. 

Finance is available in the form of: 

  • Term loans
  • Revolving Credit Facilities, (including overdrafts)
  • Invoice Finance
  • Asset Finance 

The maximum term of any lending is 3 years. 

CLBILS gives the lender a government backed partial guarantee (80%) against the outstanding balance of the facility. Needless to say, the borrower remains 100% liable for the debt. 

No personal guarantees are permitted for facilities under £250,000. For facilities above £250,000, personal guarantees may still be required but claims cannot exceed 20% of losses after all other recoveries have been applied. 

What supporting documents will be required? 

Businesses will need to provide certain evidence to show that they can afford to repay the loan. This is likely to include, (but will vary from lender to lender): 

  • Historic Accounts
  • Management Accounts
  • Business Plan
  • Cash Flow Forecast
  • Details of Assets 

ABG will be able to help you prepare any of the above documentation.

Businesses will also need to Self-Certify that they have been adversely impacted by the Coronavirus.

If you wish to speak to a member of our team about CLBILS and how your business might access the support available through the scheme please contact us 

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