On 26 May 2020, the government extended the maximum loan size available through the Coronavirus Large Business Interruption Loan Scheme (CLBILS) from £50m to £200m.
This was to help ensure that those large firms which do not qualify for the Bank of England’s Covid Corporate Financing Facility (CCFF) have enough finance to meet cashflow needs during the Coronavirus pandemic.
Companies borrowing more than £50 million through CLBILS will be subject to restrictions on dividend payments, senior pay and share buy-backs during the period of the loan, including a ban on dividend payments and cash bonuses, except where they were previously agreed.
Details of the scheme:
- CLBILS provides finance to mid-sized and larger UK businesses with a group turnover of more than £45m, that are suffering disruption to their cashflow due to lost or deferred revenues as a result of the COVID-19 outbreak;
- Facility to borrow up to 25% of turnover, up to a maximum of £200 million;
- The maximum size for invoice finance and asset finance facilities remains at £50m; and
- Application deadline is 31 January 2021.