ANNOUNCEMENT 03 Apr 2020

On 3 April 2020, the government of the United Kingdom announced the Coronavirus Large Business Interruption Loan Scheme (CLBILS) for large businesses affected by the Coronavirus outbreak.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

UK Department for Business, Energy & Industrial Strategy, Business Finance and Support, Guidance, “Apply for the Coronavirus Large Business Interruption Loan Scheme”. Available at: https://www.gov.uk/guidance/apply-for-the-coronavirus-large-business-interruption-loan-scheme#eligibility

British Business Bank, State-owned bank of UK, “Coronavirus Large Business Interruption Loan Scheme”. Available at: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/clbils/

HM Treasury, Business and Industry, Collection, “HM Treasury coronavirus (COVID-19) business loan scheme statistics”. Available at: https://www.gov.uk/government/collections/hm-treasury-coronavirus-covid-19-business-loan-scheme-statistics

British Business Bank, State-owned bank of the UK, Press Release, "Coronavirus loan schemes extended to 31 March 2021". Available at: https://www.british-business-bank.co.uk/press-release/coronavirus-loan-schemes-extended-to-31-march-2021/

British Business Bank, State-owned bank of UK, News, "Coronavirus loan schemes and the Future Fund extended to 30 November 2020". Available at: https://www.british-business-bank.co.uk/coronavirus-loan-schemes-and-the-future-fund-extended-to-30-november-2020/

Inception date: 03 Apr 2020 | Removal date: 31 Mar 2021

Loan guarantee

On 3 April 2020, the government of the United Kingdom announced the Coronavirus Large Business Interruption Loan Scheme (CLBILS) for large businesses affected by the Coronavirus outbreak. With the CLBILS financial support scheme, the government targets medium and large-sized businesses having a turnover of more than GBP45 million (USD 55.2 million). The program aims to help the businesses “that are experiencing lost or deferred revenues, leading to disruptions to their cash flow as a direct result of the Coronavirus (COVID-19) outbreak.” The scheme is facilitated by the state-owned British Business Bank and delivered through its delivery partners.

The maximum amount available through CLBILS per business was initially announced at GBP50 million (USD 61.4 million) per business, but on 20 May 2020, the maximum amount available to a borrower was increased to GBP 200 million (USD 245.4 million) per business. There is no limit on the aggregate value of loans that can be extended under CLBILS. The term of the loan is up to 3 years and all UK-based businesses from any sector can apply to the scheme.

Under the CLBILS scheme, government support will be in the form of a loan guarantee. The scheme provides the lender an 80% government-backed guarantee against the outstanding balance of the facility. The borrower is fully liable for repaying the debt.

The scheme will be effective until 20 October 2020.

On 14 July 2020, the Treasury of the UK announced the latest statistics concerning CLBILS. According to the announcement, as of 12 July 2020, a total of GBP 2.73 billion (USD 3.35 billion) of facilities has been approved under CLBILS.

On 24 September, the UK government announced that the CLBILS is extended until 30 November 2020.

On 2 November 2020, the scheme is extended until 31 January 2021.

On 18 December 2020, the CLBILS is extended until 31 March 2021. 

 

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