COVID-19 emergency loans for larger businesses

Following strong criticism of a clear ‘gap’ in the emergency loan schemes provided by the Government for businesses suffering from the COVID-19 crisis, the Chancellor Rishi Sunak announced yesterday a new emergency loans package for larger businesses.

The Coronavirus Business Interruption Loan Scheme (CBILS) for SMEs with a turnover under £45m and the Covid Corporate Financing Faculty (CCFF) designed for large investment-grade companies clearly excluded mid-sized businesses from COVID-19 funding support. The new scheme called Coronavirus Large Business Interruption Loan Scheme (CLBILS) will enable companies with a turnover between £45m and £500m to access government-backed loans of up to £25 million.

Requirements of the scheme are similar to the CBILS for SMEs and unfortunately it is a lot less straight forward to secure than suggested in recent government announcements. However, we have a vast amount of experience in supporting business secure these types loans.

Further details of the scheme for mid-sized businesses are still to be announced and we are monitoring closely the Government’s initiatives on this matter.

Scheme Highlights

• There is no guarantee that larger businesses will be provided with access to the scheme;
• Intended for facilities of up to £25,000,000;
• The loans will not be interest-free but at commercial rates of interest;
• The scheme provides a Government guarantee of up to 80% to lenders to enable loans; and
• To be eligible your business must be UK based with annual turnover between £45m and £500m

How we can help

Applications to the CLBILS requires a strong business case supported with robust business plan and financial forecasts. We have an in-depth knowledge of the market, products and funds and the process and requirement of the lenders to determine whether a business plan demonstrates long term viability and would be successful in its application to CLBILS. For more than 28 years we have provided capital and debt advice to businesses, shareholders, management teams and major financial investors, consistently demonstrating our ability to structure the most appropriate funding package for our clients throughout the economic cycle, including three recessions.

If you want to discuss how we can assist you with your CLBILS application, please do not hesitate to contact us.

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