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Coronavirus Large Business Interruption Loan Scheme (CLBILS)
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) will support medium sized to large businesses with Group annual turnover of more than £45 million to access loans up to £200m.
We are participating in CLBILS and using the Scheme to support our customers with Term Loans and Revolving Credit Facilities (RCFs).
Icon expand What is CLBILS?
The Scheme is designed to support mid-sized and larger UK businesses who are suffering disruption to their cashflow due to lost or deferred revenues during the Covid-19 outbreak. The Scheme provides the lender with a Government-backed partial guarantee (80%) against the outstanding facility balance but the borrower remains liable for 100% of the outstanding debt.
The Scheme is open to businesses providing they, or other members of their Group, have not received a facility under the Bank of England's Covid Corporate Financing Facility (CCFF), the Bounce Back Loan Scheme (BBLS), or the Coronavirus Business Interruption Loan Scheme (CBILS) and will not seek to apply whilst the Scheme Facility is outstanding.
Icon expand Which businesses are in scope?
UK-based businesses with turnover of more than £45 million per annum. The business must have been confirmed they have been impacted by coronavirus and be considered a viable business.
Businesses with private equity investors are eligible for support.
Icon expand Are all industrial sectors in scope?
Almost all business sectors can access CLBILS but the relevant borrower must not be:
- A credit institution or insurance company;
- An individual other than a sole trader or a partner acting on behalf of a partnership;
- Classified as public sector by the Office of National Statistics; or
- A state funded primary or secondary school
Icon expand What products does the bank provide CLBILS in support of?
We are using CLBILS to support our customers with new Term Loans and Revolving Credit Facilities.
Customers with existing Club or Syndicated loans should discuss additional borrowing requirements with their Relationship Director who will have access to specialist support.
Icon expand What sizes of loans are available?
We can provide CLBILS supported loans and RCFs for amounts up to £200 million for businesses with more than £45 million Group annual turnover.
The amount of the loan should be based upon the Borrower’s liquidity needs for the next 12 months.
Icon expand CLBILS Terms
Term Loans provided under this Scheme are available for a period of between 3 months and up to 3 years. The repayment schedule will be agreed dependent upon individual circumstances. Any outstanding loan balance will be repaid in full upon expiry of the facility. Revolving Credit Facilities provided under this Scheme are available for a period of between 12 months and up to 3 years. Repayment is required upon maturity of the facility.
Interest will remain payable as it falls due throughout the life of each facility.
CLBILS facilities will be documented via market standard documentation which may incorporate financial covenants and information undertakings. Certain restrictions will apply on dividend payments / distributions for loans and RCFs of up to £50 million during the term of the facility. Additional restrictions will apply for loans and RCFs over £50 million.
CLBILS facilities must not be subordinated to any other senior obligations of the Borrower. If security is provided to support existing senior lending facilities, CLBILS facilities will also benefit from this security on a pari passu basis (specific carve-outs for certain security in relation to residential development financing, asset finance and invoice finance will however apply).
Additional security may be required in support of CLBILS facilities.
Icon expand How long will CLBILS remain available?
CLBILS will remain available until 20th October 2020. This period may be extended by the Government at their discretion.
The Government has indicated that there is no maximum cap set for total lending to be supported through the new Scheme. Therefore, there is no immediate need to approach lenders if finance is not needed in the short-term.
*Security may be required. Over 18s only. Subject to status and eligibility criteria. Business use only.
Any property or asset used as security may be repossessed or forfeited if you do not keep up repayments on any debt secured on it.
To be eligible for CLBILS your business must:
- Be UK-based, with Group turnover of more than £45 million
- Have been directly impacted by coronavirus
- Have not received, either directly or within your Group, a facility under the Bank of England's Covid Corporate Financing Facility (CCFF), the Bounce Back Loan Scheme (BBLS), or the Coronavirus Business Interruption Loan Scheme (CBILS) and will not seek to apply whilst the Scheme Facility is outstanding
- Have been trading successfully before the coronavirus outbreak and be considered viable over the longer-term, notwithstanding any coronavirus impacts over the short-to-medium term
You won't be eligible if:
- Your Business turover is less than £45 million, however you may be entitled to other goverment support.
- You’re a credit institution (falling within the remit of the Bank Recovery and Resolution Directive), building society, insurer and reinsurer (but not insurance brokers), public sector body, state-funded primary or secondary school.
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 can be found on the CLBILS pages on the British Business Bank website.
If your business turnover is less than £45 million
Businesses with a turnover of less than £45 million, although not eligible for CLBILS, may be eligible for the Coronavirus Business Interruption Loan Scheme (CBILS) support.
Coronavirus guidance and support
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.