Coronavirus Large Business Interruption Loan Scheme (CLBILS)

The Scheme is designed to support mid-sized and larger UK businesses who are suffering disruption to their cashflow due to lost or deferred revenues during the Covid-19 outbreak. The Scheme provides the lender with a Government-backed partial guarantee (80%) against the outstanding facility balance but the borrower remains liable for 100% of the outstanding debt.

The Scheme was made available to businesses providing they, or other members of their Group, have not received a facility under the Bank of England's Covid Corporate Financing Facility (CCFF), the Bounce Back Loan Scheme (BBLS), or the Coronavirus Business Interruption Loan Scheme (CBILS).

UK-based businesses with Group turnover of more than £45 million per annum. The business must have been confirmed they have been impacted by coronavirus and be considered a viable business.

Businesses with private equity investors are eligible for support.

Almost all business sectors can access CLBILS but the relevant borrower must not be:

A credit institution or insurance company;

An individual other than a sole trader or a partner acting on behalf of a partnership;

Classified as public sector by the Office of National Statistics; or

A state funded primary or secondary school

We are using CLBILS to support our customers with new Term Loans and Revolving Credit Facilities.

Customers with existing Club or Syndicated loans should discuss additional borrowing requirements with their Relationship Director who will have access to specialist support.

We can provide CLBILS supported loans and RCFs for amounts up to £200 million for businesses with more than £45 million Group annual turnover.

The amount of the loan should be based upon the Borrower’s liquidity needs for the next 12 months.

Term Loans provided under this Scheme are available for a period of between 3 months and up to 3 years. The repayment schedule will be agreed dependent upon individual circumstances. Any outstanding loan balance will be repaid in full upon expiry of the facility. Revolving Credit Facilities provided under this Scheme are available for a period of between 12 months and up to 3 years. Repayment is required upon maturity of the facility.

Interest will remain payable as it falls due throughout the life of each facility.

CLBILS facilities will be documented via market standard documentation which may incorporate financial covenants and information undertakings. Certain restrictions will apply on dividend payments / distributions for loans and RCFs of up to £50 million during the term of the facility. Additional restrictions will apply for loans and RCFs over £50 million.

CLBILS facilities must not be subordinated to any other senior obligations of the Borrower. If security is provided to support existing senior lending facilities, CLBILS facilities will also benefit from this security on a pari passu basis (specific carve-outs for certain security in relation to residential development financing, asset finance and invoice finance will however apply).

Additional security may be required in support of CLBILS facilities.

The Coronavirus Large Business Interruption Loan Scheme is now closed to new applications.