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The Government has recently provided more details on the CLBILS (Coronavirus Business Interruption Scheme) for larger businesses that have a turnover of between £45m and £500m.

Who can access the scheme?
From Monday 20th April, the Coronavirus Large Business Interruption Loan Scheme (CLBILS) seeks to fill the gap between the CCFF (COVID-19 Corporate Financing Facility and CBILS Scheme and will be able to offer support to :

  • Businesses UK based in (their) business activity with an annual turnover of more than £45 million, who will be able to apply for up to £25 million of finance
  • Businesses with a turnover of more than £250 million, who will be able to apply for up to £50 million of finance
  • The businesses can be in any sector, except a) Banks and Building Societies, b) insurers and reinsurers, (but not insurance brokers) and public-sector organisations (including UK Government funded primary and secondary schools)

How does the scheme operate?

The CLBILS operates in a very similar way to the CBILS scheme already launched with a slight difference that CLBILS does not include coverage for the first 12 months of interest and fees and the scheme is only eligible for where borrowers have been unable to secure regular commercial financing. This may well have an impact on the ability of borrowers to access CLBILS.
The UK Government will provide the lender with a guarantee of 80 % of the outstanding balance. Personal Guarantees will not be needed for facilities under £250k. However, at the lenders discretion the Personal guarantees may be required for loans over £250k.
The scheme will operate under ‘Commercial rates of interest’ and we expect the scheme to be available through the British Business Banks 40 + accredited lenders.

It is the hope that the CLBILS will assist many companies (including leverage backed companies) where CBILS and CCFF have not been able to so far.

  • Applicants must be UK based in its business activity, with turnover of over £45m per year.
  • They should have a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender, and for which the lender believes the provision of finance will enable the business to trade out of any short-to-medium term difficulty.
  • The scheme is open to businesses who have not received a facility under the Bank of England’s Covid Corporate Financing Facility (CCFF).

Lender and Borrower are still free to enter into loan agreements outside of CLBILS e.g. where there is no economic benefit to the borrower of taking out a CLBILS loan over normal commercial lending.

HOW TO APPLY

CLBILS will be available through a range of British Business Bank accredited lenders and partners, which will be listed on the British Business Bank website. Existing CBILS lenders can seek expedited accreditations to become Lenders under the CLBILS scheme.  Its not automatic that a CBILS lender is also a CLBILS lender. The British Business Bank expects to accredit a number of existing CBILS lenders shortly and is publishing a request for proposals documents making the scheme available to new lenders.

Further details are expected later in April. For further information on CLBILS contact Philip Whitehurst

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