The Government has announced a further scheme to support businesses through the Coronavirus crisis.
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) is aimed at large businesses with annual turnovers of between £45 million and £500 million.
These businesses cannot access facilities through the Coronavirus Business Interruption Loan Scheme (CBILS), which is limited to companies with a turnover below £45 million, or the Bank of England’s COVID Corporate Financing Facility (CCFF), aimed at the very largest businesses.
Like CBILS, a Government guarantee of 80 per cent will be provided to enable banks to lend in circumstances where they might not otherwise be able to.
Unlike CBILS, which only provides loans of up to £5 million, CLBILS will provide loans of up to £25 million.
However, while CBILS provides loans that are interest-free for 12 months, CLBILS loans will be provided at normal commercial rates of interest.
Further details of how to access the scheme will be announced by the Treasury later in April.
It is strongly advised that you take independent legal advice when taking on a loan, particularly where a personal guarantee is requested.