The Coronavirus Large Business Interruption Loan Scheme (“CLBILS”) – now closed

Published by John Walsham on 3 November 2020

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The Coronavirus Large Business Interruption Loan Scheme is now closed. You can find out more about the replacement Recovery Loan Scheme here. The article below should only be used for archival or research purposes.

The British Business Bank’s CLBILS facilitates business finance to mid-sized and larger UK businesses, specifically those with a turnover above £45m, the upper limit of the current CBILS initiative. As with CBILS, it is for businesses that are viable but experiencing lost or deferred revenues, leading to disruptions to their cashflow. The borrower always remains 100% liable for the debt.

Details of the scheme and the panel of approved lenders are available from the British Business Bank here.

We are ready to assist our clients with the application process as the lender will be looking for a sound borrowing proposal with supporting forecasts. We are well placed to bring our knowledge of our clients and the lenders credit decision-making together to advise you. This will allow clients to remain focused on running day-to-day operations during this crucial period. Please get in touch with your usual Kreston Reeves contact for further information on how we can help or myself.

The CLBILS deadline has been extended to 31 March 2021 but check with your lender that they are still participating in the scheme.

How the CLBILS works

  • Businesses with turnover from £45m up to £250m can borrow up to £25m under the scheme.
  • Businesses with turnover over £250m can borrow up to £50m under the scheme.

The facilities are available on repayment terms from 3 months to 3 years.

Personal guarantees will not be required for lending below £250,000 and above this sum will be considered on a case by case basis by the lender but recovery under the guarantee is capped at 20% of the outstanding CLBILS loan after all other recoveries have been applied.

Lending covered by the scheme includes:

  • Term facilities
  • Revolving credit facilities (including overdrafts)
  • Invoice finance facilities
  • Asset finance facilities

To be eligible the business must:

  • Be UK-based in its business activity
  • Have an annual turnover greater than £45 million
  • Have a borrowing proposal which the lender would consider viable, were it not for the current pandemic, and for which the lender believes the provision of finance will enable the business to trade out of any short-term to medium-term difficulty
  • Self-certify that it has been adversely impacted by the Coronavirus (COVID-19)
  • Not have received a facility under the Bank of England’s Covid Corporate Financing Facility (CCFF)

For further information on this topic please contact your usual Kreston Reeves contact or myself here.

How can we help?

Our team is well resourced and experienced in advising companies and not-for profit organisations, allowing you to focus on managing your business during this trying period. We are set up to work from home so you can expect the same level of service, albeit remotely rather than in-person. We have:

  • A team of debt advisory and corporate finance experts used to working with banks and other lenders, and can support you with CBILS, CLBILS and CCFF scheme applications. We understand how lenders are currently making credit decisions, and for CBILS/CLBILS loans above £250k particularly can help with your application.
  • Our restructuring and insolvency experts can advise businesses under stress about the options available to them.
  • Our tax experts will also be on hand to advise you on applications to HMRC for the Time to Pay initiative, for corporate tax advice and R&D tax claims. We also have VAT & Duty experts who can support you in revising your VAT position.

Do call us on 0330 124 1399, via our enquiry form or speak to your usual Kreston Reeves contact.

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