UK Covid-19 Large Business Interruption Loan Scheme Application: Eligibility and Guidelines

Filed in Loan by on November 19, 2020 0 Comments

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) provides financial support to larger businesses affected by coronavirus (COVID-19). The scheme helps medium and large sized businesses to access loans and other kinds of finance up to £200 million.

The government guarantees 80% of the finance to the lender.

The scheme is open to applications until 31 January 2021.

Eligibility

You can apply for a loan if your business:

  • is based in the UK
  • has an annual turnover of over £45 million
  • has not received support under the Bank of England’s COVID-19 Corporate Financing Facility (CCFF)

You need to show that:

  • your business would be viable were it not for the pandemic
  • your business has been affected by coronavirus
  • the loan will enable you to trade out of any short-term to medium-term difficulty resulting from coronavirus

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Businesses from any sector can apply, except:

  • banks, insurers and reinsurers (but not insurance brokers)
  • building societies
  • public-sector bodies
  • state-funded primary and secondary schools

What You Can Get

You can apply for:

  • loans
  • revolving credit facilities (including overdrafts)
  • invoice finance
  • asset finance

A lender can provide up to 25% of your annual turnover. The maximum amount you can borrow is £200 million.

Loan Duration

Finance is available from 3 months to 3 years.

How to Apply

Find a lender. You should approach a suitable lender yourself via the lender’s website.

You’ll need to tell the lender:

  • the amount you’d like to borrow
  • what the money is for
  • how long you’d like to pay it back

Supporting Documents

You’ll need to provide documents that show you can afford to repay the loan. These may include:

  • management accounts
  • cash flow forecast
  • business plan
  • historic accounts
  • details of assets

The documents you need will depend on the lender. A loan could still be an option even if you do not have everything listed here. The lender will check that the loan is:

  • for a suitable business purpose
  • affordable for you
  • the right type of finance for your needs

The lender will decide whether to offer you a loan or another type of finance. Your business will be responsible for repaying 100% of the amount you borrow. If one lender turns you down, you can apply to other lenders in the scheme.

You may want to consider using a broker to find the right type of finance for your needs, or do your own research using the British Business Bank’s Finance Guide.

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