- April 8, 2020
- Posted by: mardenco
- Category: Business Support
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) will be made available to enable banks to make loans of up to £25m (the present limit for the smaller scheme is £5m). This will allow firms with an annual turnover of between £45m and £500m access to the 80% government guarantee. The CLBILS is expected to be launched later this month. Facilities backed by a guarantee under CLBILS will be offered at commercial rates of interest.
The government will provide commercial lenders with an 80% guarantee on individual loans for businesses that would be otherwise unable to access the finance they need.
Lenders will still be expected to conduct their usual credit risk checks, but this scheme allows them to specifically support business that were viable before the COVID-19 outbreak but are facing significant cash flow difficulties that would otherwise make their business at risk in the short term.
The new scheme will support a range of finance products including short term loans, overdrafts, invoice finance and asset finance.