Government launch Coronavirus Large Business Interruption Loans
20/04/2020
The government has launched a new loan scheme to support businesses with an annual turnover of more than £45 million.
Whilst detailing expanded measures to support smaller businesses through the CBILS at the beginning of April, it was also announced that a second loan scheme would be launched later in the month to help the UK’s medium and large businesses.
From today, Monday, 20th April, the CLBILS is now operational to support those turning over more than £45 million who have been affected by the current climate.
The new scheme will allow banks to offer loans of up to £25 million to businesses with an annual turnover between £45 million and £250 million, and loans of up to £50 million to businesses with turnover greater than £250 million. These loans will be covered by an 80% guarantee from the government in the event the business is unable to repay the loan.
It is hoped that this will further the banks’ confidence to lend to more businesses who are struggling with their cash flow, and who may have struggled to secure a loan otherwise. The loans offered under CLBILS will be offered at commercial rates of interest.
Use our instant business loan quote tool to see how much your business could secure.
Speaking at the time the new measures were announced Rishi Sunak MP, Chancellor of the Exchequer, said:
“We are making great progress on getting much-needed support out to businesses to help manage their cashflows during this difficult time – with millions of pounds of loans and finance being provided to hundreds of firms across the country.
“And now I am taking further action by extending our generous loan scheme so even more businesses can benefit. We have also listened to the concerns of some larger businesses affected by COVID-19 and are announcing new support so they can benefit too.
“This is a national effort and we’ll continue to work with the financial services sector to ensure that the £330 billion of government support, through loans and guarantees, reaches as many businesses in need as possible.”
If you’re struggling to manage your business’s cash flow due to the impact of the current pandemic, speak to our funding experts by calling 0800 9774833 or using the form below to request a call back at a convenient time.
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