About the scheme
The scheme is a part of a wider package of government support for UK businesses and employees. Read more at the Government’s Business Support website.
Specifically, it facilitates access to finance for businesses with a turnover above £45 million, the upper limit for the existing smaller-business focused Coronavirus Business Interruption Loan Scheme (CBILS).
How it works
CLBILS is available through a range of British Business Bank accredited lenders and partners, listed on the British Business Bank website.
A lender can provide:
- up to £25 million to businesses with turnover from £45 million up to £250 million
- up to £50 million to businesses for those with a turnover of over £250 million
Finance is available in the form of:
- term loans
- revolving credit facilities (including overdrafts)
- invoice finance
- asset finance
CLBILS gives the lender a government-backed partial guarantee (80%) against the outstanding balance of the facility.
Under the scheme, personal guarantees of any form will not be taken for facilities below £250,000.
Key features of the scheme
- Finance of up to £50 million
- Guarantee to the lender to encourage them to lend
- The maximum value of a facility provided under the scheme is £50 million (£25 million for eligible businesses with a turnover under £250 million), available on repayment terms of up to three years.
The scheme provides the lender with a government-backed, partial guarantee (80%) against the outstanding balance of the finance.
The borrower remains 100% liable for the debt.
Finance terms – From three months to three years.
Security – No personal guarantees are permitted for facilities under £250,000.
For facilities of £250,000 and over, claims on personal guarantees cannot exceed 20% of losses after all other recoveries have been applied.
