- Eligible business may apply for loans, overdrafts, invoice finance and asset finance facilities:
- businesses with turnover between £45m and £250m can borrow up to £25m
- businesses with turnover in excess of £250m can borrow up to £50m
- larger businesses can borrow up to 25% of annual turnover, up to a maximum of £200m
- UK Government guarantees 80% of all loans
- Standard commercial terms and interest rate applied to the loans (no repayment holiday offered).
- Terms three months to three years.
- Collateral and guarantees decided on a case by case basis, but note that the Government guarantee sits behind the borrower, and the primary recourse for the lender remains against the borrower itself (i.e. the 80% government guarantee applies once the lender has exhausted recovery options against the borrower, including personal guarantees and collateral, excluding primary residence).
UK-based large businesses operating in any sector (excluding credit institutions, insurers, reinsurers, building societies, public sector bodies, further-education establishments (if grant funded) and state-funded primary and secondary schools).
Applicants requesting CLBILS guaranteed loans must not have used (or intend to use) the Bank of England's Covid Corporate Financing Facility (CCFF) (additional details below).
Any companies which are backed by a private equity sponsor will be treated as a separate company for the purposes of assessing turnover and will be eligible for a separate loan under the CLBILS (even where the sponsor has a majority stake).
Companies borrowing more than £50m under the CLBILs will be imposed restrictions on paying dividends and executive remuneration.
For more information about eligibility please see this link.
The British Business Bank.
Financing made available through accredited third party lenders.
Applications to be made directly to the accredited lender.
From 20 April 2020 until at least 20 October 2020