The Chancellor announced on 16th April that the Coronavirus Business Interruption Loan scheme is to be extended to large businesses.
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) has been launched to support firms with a turnover of more than £250 million, who from Monday 26th May, will be able to apply for up to £200 million of finance.
Large businesses will be able to apply for financial support under the scheme which as with CBILS, will be administered via accredited lenders, a list of which is available from the British Business Bank.
As with CBILS, in order to provide comfort to lenders, the government will provide a guarantee of 80% on each loan.
Important points to note:
- Borrowers under CLBILS can borrow up to 25% of turnover up to a maximum of £200 million
- 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
- Borrowers cannot pay any cash bonuses, or award any pay rises to senior management (including the board) except where they were a) declared before the CLBILS loan was taken out b) is in keeping with similar payments made in the preceding 12 months and c) does not have a negative material impact on the borrower’s impact to repay the loan.
Further information can be read on the .gov website here.