Coronavirus Large Business Interruption Loan Scheme (CLBILS)

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) provides finance to mid-sized and larger UK businesses with a group turnover of more than £45m (the upper limit for the existing smaller-business focused CBILS) that are suffering disruption to their cashflow due to lost or deferred revenues during the Covid-19 outbreak. Following HM Treasury’s announcement on 19 May, several changes to the CLBILS scheme have taken effect from 26 May. The maximum amount available through CLBILS to a borrower and its group has now increased from £50m to £200m. Term loans and revolving credit facilities over £50m will be offered by CLBILS lenders which have secured additional accreditation. The maximum size for invoice finance and asset finance facilities remains at £50m. Borrowers may be able to access additional facilities from separate accredited lenders provided they do not in aggregate exceed the maximum amount applicable to that borrower. Please note that the additional finance may mean the borrower must abide by the additional restrictions noted above.

Companies borrowing more than £50m through CLBILS will be subject to further restrictions on dividend payments, senior pay and share buy-backs during the period of the loan. Further information on changes introduced on 26 May, including new provisions on seniority of CLBILS facilities, can be found on the CLBILS pages on the British Business Bank website.

New Scheme Features

  • Term loans,
  • Revolving credit facilities,
  • Invoice finance, and
  • Asset finance facilities.

It is designed to give lenders greater confidence to provide funding by providing a partial guarantee of 80% of the outstanding facility balance.

Note: The guarantee is to the lender, not the borrower.
The borrower always remains 100% liable for the debt.

  • Up to £200m facilities: The maximum amount available through CLBILS to a borrower and its group has now increased from £50m to £200m. Term loans and revolving credit facilities over £50m will be offered by CLBILS lenders which have secured additional accreditation. The maximum size for invoice finance and asset finance facilities remains at £50m. Borrowers may be able to access additional facilities from separate accredited lenders provided they do not in aggregate exceed the maximum amount applicable to that borrower. Please note that the additional finance may mean the borrower must abide by the additional restrictions noted above.
  • 80% guarantee: The scheme provides the lender with a government- backed, partial guarantee (80%) against the outstanding facility balance.
  • Finance terms: Finance terms are from three months to three years.
  • Economic benefits go to the borrower: Borrowers will benefit from a proportionate reduction in pricing as a result of lenders receiving capital and risk benefits.
  • Personal guarantees: No personal guarantees are permitted for facilities under £250,000. For facilities of £250,000 and over, claims on personal guarantees cannot exceed 20% of losses after all other recoveries have been applied.
  • The borrower always remains 100% liable for the debt.

Businesses from all sectors can apply for a facility.

  • Applicants must be UK based in their business activity, with a group turnover of more than £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), or CBILS or BBLS.

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 Does a Business Apply for a CLBILS-Supported Facility?

CLBILS is available through a range of British Business Bank accredited lenders and partners, which are listed on the British Business Bank website. www.british-business-bank.co.uk

Decision-making on whether a mid-sized or larger UK business is eligible for CLBILS is fully delegated to accredited CLBILS lenders.

Please note: The amount of finance offered varies per individual lender. Please see the lender websites for more information on the finance amounts and variants they are able to offer and lender-specific application requirements and terms & conditions.

Important Information

Please note: As with any other commercial transaction, the borrower is always responsible for repayment of the full value of any facility supported by CLBILS.

Please note: The guarantee is to the lender, and not the small business.

Legal Notices

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS). British Business Bank plc is wholly owned by HM Government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). Full details on CLBILS and the list of participating CLBILS lenders can be found on the British Business Bank website: www.british-business-bank.co.uk

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