Following HM Treasury’s announcement on the 19th May, several changes to the Coronavirus Large Business Interruption Loan Scheme (CLBILS) take effect from the 26th May.
The scheme facilitates access to finance for mid-sized and larger businesses with a group turnover of more than £45m affected by the coronavirus outbreak. 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. 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 page on the British Business Bank website. Please note that they have introduced a new, in-depth FAQs section for businesses, which has the full details of the changes to the scheme.
Other Business Finance Support Options
You can also find details of other government measures to support public services, people and businesses through this disruption on the Government’s Business Support website.
In addition, 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.