17 April 2020
Brought forward by lenders accredited by the British Business Bank, the initiative will help provide facilities of up to £25m for those with turnover of between £45m and £250m, and facilities of up to £50m for those with revenue of more than £250m, which are suffering disruption to their cashflow.
CLBILS will support term loans, revolving credit facilities, invoice finance and asset finance facilities. It is designed to give lenders “greater confidence to provide funding” by providing a partial guarantee of 80 per cent of the outstanding facility balance.
Keith Morgan, chief executive of the British Business Bank, said: “The new CLBILS focuses on a relatively narrow area of the market, but one that is vitally important to the UK economy.
“More finance for viable mid-sized and larger firms will help them protect jobs and be in a better position to resume normal business when the current pandemic subsides.”
Stephen Jones, chief executive of UK Finance, added: “Banks and finance providers are committed to helping British businesses through these difficult times.
“Frontline staff across the industry are working tirelessly to deliver money to viable businesses as quickly as possible and providers will be working throughout the weekend to get this scheme up and running for Monday (20 April).”