COVID-19: Expansion of loan scheme for large businesses
20 April 2020
On 16 April 2020, the Chancellor announced the details of the Coronavirus Large Business Interruption Loan Scheme (“CLBILS”) which has been implemented to support businesses which did not meet the definition of ‘small and medium sized businesses’ which were able to access the Coronavirus Business Interruption Loan Scheme “CBILS”.
- The Scheme will be available to any businesses with a turnover of more than £45m.
- Those with a turnover of more than £45 million will now be able to apply for up to £25 million of finance.
- Businesses with turnover of more than £250 million can borrow up to £50 million from lenders.
- Plans to exclude businesses with a turnover of £500 million or more have been abandoned.
- The Scheme can be accessed as of today (20 April 2020).
- The scheme will be available through a series of accredited lenders, which will be listed on the British Business Bank website.
- Applicants will be required to prove that they have been unable to secure regular commercial finance (a requirement which has been abandoned for applicants to the standard CBILS scheme).
- Government will guarantee 80% of the loan for lenders.
- The Chancellor stated the following:
“This is a national effort and we’ll continue to work with the financial services sector to ensure that our £330 billion of government support, through loans and guarantees, reaches as many businesses in need as possible.”
See the full details here.
Aspire Comment
This is the next step Government are taking to avoid some businesses ‘falling through the cracks’ in the support measures which have been introduced.
If you require any further advice or guidance about how to manage the furlough process or help in understanding the support available to your business, please get in touch with one of our advisors on 0121 445 6178 or email enquire@aspirepartnership.co.uk.