Coronavirus Large Business Interruption Loan Scheme (CLBILS)

The scheme closed to new applications on 31 March 2021.

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) provided finance to mid-sized and larger UK businesses that had been affected by COVID-19, had a group turnover of more than £45 million and were looking for up to £200 million in finance.

(To be approved for finance, these businesses needed to satisfy the scheme’s eligibility criteria.)

CLBILS closed to new applications on 31 March 2021.

CLBILS was delivered by a range of lenders and partners accredited by the British Business Bank. These lenders provided:

  • up to £200 million in the form of term loans and revolving credit facilities (overdrafts)
  • up to £50 million in the form of invoice finance and asset finance

Features of the scheme included the following:

  • Repayment terms of up to three years
  • Restrictions on dividend payments, senior pay and share buy-backs during the period of the loan for companies borrowing more than £50 million

Under CLBILS, a lender took no form of personal guarantee for facilities below £250,000. For facilities above £250,000, the lender could still require personal guarantees, but claims could not exceed 20% of losses after all other recoveries had been applied.

The scheme gave the lender a government-backed partial guarantee (80%) against the outstanding balance of the facility. The borrower always remained fully liable for the debt.

FAQs

The minimum amount you can borrow from CLBILS is £50,000.

The scheme went live on 20 April 2020 for an initial period of six months, but has now been extended to 31 March 2021.

You must repay a CLBILS facility within three years.

British Business Bank expects lenders to follow their normal credit policy when assessing additional security generally.

A lender cannot take personal guarantees for CLBILS facilities under £250,000. For facilities of £250,000 and over, claims on personal guarantees applied to the scheme facility cannot exceed 20% of losses on the scheme facility after all other recoveries have been applied.

No. CLBILS is only open to businesses that:

To be eligible for CLBILS, a business must:

  • be trading in the United Kingdom
  • have the core of its business operations in the United Kingdom

A person will not be carrying on a business in the UK solely by selling into, or trading with a person in, the UK.

A "business in difficulty" or "undertaking in difficulty" includes businesses that:

  • had accumulated losses greater than half of their subscribed share capital (for limited liability companies) or capital (for unlimited liability companies)
  • had entered into collective insolvency proceedings or fulfilled the criteria to be put into collective insolvency proceedings
  • had previously received rescue aid that was yet to be reimbursed or (in the case of a guarantee, terminated)
  • had received restructuring aid and were still under a restructuring plan
  • had (where that business is not an SME) fallen below solvency ratios (see below) for the previous two years

A business or undertaking needs to fulfil only one of these criteria to be in difficulty.

New guidance issued on 25 September 2020 allows for the "undertaking in difficulty" assessment to be determined at the date of application for a scheme facility. This means that a business that was an undertaking in difficulty on 31 December 2019 but, at the date of application for a scheme facility, is no longer an undertaking in difficulty will now be (in principle) eligible for the scheme.

View the full CLBILS FAQs

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