The Coronavirus Large Business Interruption Loan Scheme (CLBILS) facilitates access to finance for medium-sized and larger businesses affected by the coronavirus outbreak.
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) is available for mid-sized and larger businesses with a group turnover of more than £45 million.
HOW TO APPLY
1. FIND A LENDER
The British Business Bank operates CLBILS via its accredited lenders. Using the buttons below, view accredited lenders based on the amount you want to borrow.
2. APPROACH A LENDER
You should approach a lender yourself, ideally via the lender’s website.
Not every accredited lender can provide every type of finance available under CLBILS, and the amount of finance offered varies between lenders. Please see the lenders’ websites for more information on the amounts they are able to offer.
3. THE LENDER MAKES A DECISION
The lender has the authority to decide whether to offer you finance.
Under the scheme, lenders will not take personal guarantees of any form 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.
4. IF THE LENDER TURNS YOU DOWN
If one lender turns you down, you can still approach other lenders within the scheme.
WHO IS ELIGIBLE
Your business must:
- Be UK-based in its business activity
- Have an annual turnover of more than £45 million
- Have a borrowing proposal which the lender would consider viable, were it not for the current pandemic, and for which the lender believes the provision of finance will enable the business to trade out of any short-term to medium-term difficulty
- Self-certify that it has been adversely impacted by the coronavirus (COVID-19)
- Not have received a facility under the Bank of England’s COVID-19 Corporate Financing Facility (CCFF), or CBILS or BBLS.
Lenders will need further information to confirm eligibility. All lending decisions remain fully delegated to the accredited lenders.
Businesses from any sector can apply, except the following:
- Credit institutions (falling within the remit of the Bank Recovery and Resolution Directive), insurers and reinsurers (but not insurance brokers)
- Building societies
- Public-sector bodies
- State-funded primary and secondary schools
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, including new provisions on seniority of CLBILS facilities, can be found on the CLBILS FAQs for businesses.
WHAT LENDERS WILL NEED FROM YOU
When you apply for a business loan, most lenders will ask you for the following:
DETAILS OF THE LOAN
- The amount you would like to borrow
- What the money is for — the lender will check that it’s for a suitable business purpose and the right type of finance for your needs
- The period over which you will make the repayments — the lender will assess whether the loan is affordable for you
You will need to provide certain evidence to show that you can afford to repay the loan. This is likely to include the following:
- Management accounts
- Cash flow forecast
- Business plan
- Historic accounts
- Details of assets
The above requirements will vary from lender to lender. If you do not have everything listed here, a CLBILS loan could still be an option to provide finance to support your business.
Note: 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.
OTHER BUSINESS FINANCE SUPPORT OPTIONS
You can find details of other government measures to support public services, people and businesses through this disruption on the Government’s Business Support website.
GUIDANCE AND SUPPORT FOR YOUR BUSINESS DURING THIS PERIOD OF UNCERTAINTY
The British Business Bank and The Institute of Chartered Accountants in England and Wales (ICAEW) have created new content to help businesses that are facing financial and operational challenges as a result of the coronavirus outbreak.
You can view this regularly updated guidance at the Business Finance Guide website.