The Coronavirus Large Business Interruption Loan Scheme, commonly known as CLBILS, is a UK Government scheme that can provide facilities of up to £50 million for mid-sized and larger UK businesses across the UK (with a turnover above £45 million - the upper limit for the smaller CBILS), who are experiencing lost or deferred revenues, leading to disruptions to their cashflow. CLBILS supports a wide range of business finance products, including term loans, revolving credit facilities (including overdrafts), invoice finance and asset finance facilities.
The key features of CLBILS are:
1. Finance up to £50 million – 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.
2. Guarantee to the lender to encourage them to lend - 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.
3. Finance terms - From three months to three years.
4. Personal Guarantees & facilities under £250,000 - No personal guarantees for facilities under £250,000.
5. Personal Guarantees & facilities under £250,000 - Personal guarantees may still be required, at a lender’s discretion, for facilities above £250,000, but recoveries under these are capped at a maximum of 20% of the outstanding balance of the CLBILS facility after the proceeds of business assets have been applied.