Although the scheme has not launched yet, we’ve put together a short summary outline of the government measures to support larger businesses via the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
What is the Coronavirus Large Business Interruption Loan Scheme (CLBILS)?
CLBLIS is designed to support large businesses, with an annual turnover of between £45 million and £500 million, to access loans of up to £25 million, and is expected to be delivered through commercial lenders.
This scheme allows lenders to support businesses that were viable before the coronavirus outbreak but now face significant cash flow difficulties that would otherwise make their business unviable in the short term.
Is it guaranteed?
The government will provide lenders with an 80% guarantee on individual loans for businesses that would be otherwise unable to access the finance they need.
This will give banks the confidence to lend to many more businesses that are impacted by coronavirus. Facilities backed by a guarantee under CLBILS will be offered at commercial rates of interest.
Is my business eligible?
You are eligible if your business:
- is based in the UK;
- has an annual turnover of between £45 million and £500 million;
- is unable to secure regular commercial financing.
You must also have a borrowing proposal which the lender:
- would consider viable, if not for the coronavirus pandemic;
- believes will enable you to trade out of any short-term to medium-term difficulty.
Businesses with a turnover of less than £45 million may be entitled to other government support – more details are provided within our QASSS Coronavirus Business Round-Up
Is anyone excluded from applying?
The government has included exceptions, including:
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- further-education establishments, if they are grant-funded
- state-funded primary and secondary schools
Further detail on eligibility will be confirmed later this month.
How do I apply?
The scheme will launch later this month – once more details are available, we’ll provide an update. We anticipate it will be available through a range of accredited lenders.
Once the scheme has launched, there is likely to be a big demand for facilities. You should 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 enquiries due to coronavirus.