CLBILS is the new government backed lending scheme for larger businesses which launched yesterday, 20 April 2020.
CLBILS is essentially the bigger brother of the existing CBILS scheme, under which smaller SMEs can apply for interest free loans of up to £5m. CLBILS fills the gap that had previously existed between CBILS for SMEs and the Bank of England’s Covid-19 Corporate Financing Facility (CCFF) under which the BoE bought commercial paper directly from very large investment grade businesses.
CLBILS is for businesses with a turnover over £45m based on the last set of annual accounts, whereas the existing CBILS programme is for businesses with a turnover under £45m.
The loan sizes are up to £50m for businesses with a turnover over £250m and up to £25m for businesses turning over £45m - £250m.
Like CBILS, the loans are 80% guaranteed by the government via the British Business Bank, but are actually issued via participating lenders.
In order to apply you must:
Other than the size of the eligible businesses and loans, the key differences between CLBILS and CBILS are:
If you think you will be eligible the easiest route to apply is via your existing contact at your lender, assuming that they are part of the scheme. You can check which lenders are part of the scheme here, and if your current lenders are not part of the scheme then you will need to contact a lender who is.
Whilst the CBILS programme was initially dogged by (justifiable) bad publicity and low acceptance rates, subsequent changes have made the scheme more accessible and have increased acceptance rates. However, we are aware that few lenders are currently considering applications from new customers, and therefore most potential CBILS borrowers are limited to applying to their existing bankers. It remains to be seen if this will also be the case with CLBILS.
If you have any queries in relation to any of the above or any other queries around financing your company at this time, please contact Ed Hobbs.
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