Monday, 20 April, 2020
The government-backed loan scheme for large businesses affected by coronavirus (COVID-19) is open.
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) will ensure that more UK firms are able to benefit from government-backed support during this difficult time.
Lenders are still expected to conduct their usual credit risk checks, however, this scheme allows them to support business that were viable before the COVID-19 outbreak but are facing significant cash flow difficulties that would otherwise make their business unviable in the short term.
The scheme will provide a government guarantee of 80% to enable banks to make loans of up to £25 million to firms with an annual turnover of more than £45 million and up to £50 million for firms with a turnover of more than £250 million. This will give banks the confidence to lend to more businesses impacted by coronavirus but which they would not lend to without CLBILS.
Eligible businesses must be UK-based in terms of activity. They must be unable to secure regular commercial financing. Businesses should also have a borrowing proposal which the lender would consider viable, were it not for the COVID-19 pandemic.
The scheme is available through a range of accredited lenders, which are listed on the British Business Bank website.
More information about this funding opportunity and the application process is available on the GRANTfinder funding information platform. GRANTfinder provides up-to-the minute content, insight and analysis on funding news. To find out more about how GRANTfinder can keep you in the know, and subscription fees, contact us today.