Financial support package aimed at larger companies set to launch

Rishi Sunak

The British Business Bank is launching a financial support package for medium-sized and large companies, from Monday, April 20.

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) will provide financial support to mid-sized and larger businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.

The scheme is part of a wider package of government support for UK businesses and employees.

Specifically, it facilitates access to finance for businesses with a turnover above £45m, the upper limit for the existing smaller-business focused Coronavirus Business Interruption Loan Scheme (CBILS).

CLBILS will be available through a range of British Business Bank-accredited lenders and partners.

A lender can provide:

  • up to £25m to businesses with turnover from £45m up to £250m
  • up to £50m to businesses for those with a turnover of more than £250m

Finance is available in the form of:

  • term loans
  • revolving credit facilities (including overdrafts)
  • invoice finance
  • asset finance

CLBILS gives the lender a Government-backed partial guarantee (80%) against the outstanding balance of the facility. The borrower remains fully liable for the debt.

Under the scheme, personal guarantees of any form will not be taken for facilities below £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.

Finance terms are from three months to three years.

The British Business Bank is the Government’s economic development bank.

Chancellor Rishi Sunak said: “I want to ensure that no viable business slips through our safety net of support as we help protect jobs and the economy. That is why we are expanding this generous scheme for larger firms.

“This is a national effort and we’ll continue to work with the financial services sector to ensure that our £330 billion of government support, through loans and guarantees, reaches as many businesses in need as possible.”

Keith Morgan, British Business Bank chief executive, said: “The new Coronavirus Large Business Interruption Loan Scheme focuses on a relatively narrow area of the market, but one that is vitally important to the UK economy.

“More finance for viable mid-sized and larger firms will help them protect jobs and be in a better position to resume normal business when the current pandemic subsides.”