Coronavirus Large Business Interruption Loan Scheme

Support provided by British Business Bank

What does this involve?

Mid-sized and large UK businesses that have been adversely impacted by the coronavirus (COVID-19) situation can apply for support through a loan backed by the UK Government.

Businesses with a turnover of more than £45 million can apply for loans of up to £200 million.

CLBILS loans are supplied through regular commercial lenders at commercial rates of interest.

The government will provide an 80% guarantee on individual loans to give lenders the confidence to support businesses that have been unable to secure financing from regular sources.

Lenders will conduct the usual credit checks, but will make allowances for businesses that were viable before the coronavirus crisis but are experiencing short to medium-term difficulties now.

Businesses will be responsible for repaying any loan they receive under the CLBILS scheme.

Am I eligible?

To be eligible, your business must be:

  • based in the UK
  • turning over between £45 million and £500 million
  • unable to secure regular commercial financing
  • viable, were it not for the coronavirus pandemic
  • experiencing short- to medium-term difficulties that you will be able to trade out of with financial support

Businesses from any sector can apply, except for the following:

  • Credit institutions, insurers and reinsurers (but not insurance brokers)
  • Building societies
  • Public-sector bodies
  • Further-education establishments funded by grants
  • State-funded primary and secondary schools

Businesses already receiving support through the Bank of England’s COVID-19 Corporate Financing Facility (CCFF) are not eligible.

What does this cost?

As this is a loan scheme, businesses are responsible for paying back the full amount of the loan, as well as any fees and interest charged by the lender.

Who is this for?

CLBILS is for businesses based in the UK which have an annual turnover of more than £45 million and which are experiencing short- to medium-term difficulties due to the coronavirus situation.

How long does this take?

The time required to process the loans will vary by lender and the business's individual circumstances.

Important information

Businesses should apply directly through an individual lender. A list of lenders accredited by the British Business Bank are available on its website.

Applicants must provide details of the loan, including:

  • the amount they wish to borrow
  • what it will be used for
  • the expected timeframe for repayment

Lenders will also expect certain supporting documents, which may include:

  • Management accounts
  • Cash flow forecast
  • Business plan
  • Historic accounts
  • Details of assets

Lenders have the right to refuse to finance a loan. If this is the case, businesses may then apply to a different lender.

Next steps

Visit the British Business Bank website for more information and to view a list of lenders.

Support provided by British Business Bank

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