Like the Coronavirus Business Interruption Loan Scheme, the
Coronavirus Large Business Interruption Loan Scheme will be
facilitated by the Government-owned British Business Bank and
delivered through its delivery partners. Lenders will offer
loans of between £30,000 and £50 million to support viable
businesses with a turnover of £45 million and above that are
affected by the coronavirus outbreak. There will be no limit on
the number and aggregate value of loans that can be made under
the scheme.
The scheme is available on a temporary basis from 20 April for
an initial six months, and can be extended as required. The key
parameters of the scheme are as follows:
- the percentage of the remaining balance of each loan that
is guaranteed by the Government will be 80 per cent;
- there will be no portfolio cap for the lender, enabling
lenders to benefit from capital relief to help lenders to price
loans competitively;
- a personal guarantee approach that mirrors the existing
CBILS programme (no personal guarantees permitted on loans
below £250,000, and personal guarantees up to a maximum of 20
per cent of losses post-business recovery);
- interest charged at commercial rates (but lenders are
expected to ‘pass through’ benefit of the guarantee);
- businesses with turnover of up to £250m can access a
maximum debt facility of £25m, those with higher turnovers can
access facilities of up to £50m; and
- facilities will be available with a maximum term of three
years.
The new scheme was launched on 20 April. The Government will be
subject to a new statutory contingent liability, and I will be
laying a Departmental Minute today containing a description of
the liability undertaken.
For more information on this and other support for business,
please go to https://www.businesssupport.gov.uk/
