Coronavirus Large Business Interruption Loan Scheme

Government guarantee is to enable more ‘no’ decisions to become ‘yes’ outcomes

This is a loan scheme that has been set up to help large businesses that are struggling with cash flow due to revenues being deferred or lost due to coronavirus.

To be eligible, businesses need to have an annual turnover between £45 million and £500 million, and business activity has to be based in the UK.

The scheme is open to businesses that have been affected by coronavirus and can’t secure regular commercial funding.

Companies from all sectors can apply for the Coronavirus Large Business Interruption Loan Scheme. However, there are some exclusions.

Banks can offer eligible large businesses loans of up to £25 million, which are backed by an 80% guarantee from the Government.

Lenders will carry out the usual credit risk checks. However, the aim of the government guarantee is to enable more ‘no’ decisions to become ‘yes’ outcomes.

Short-term loans, overdrafts, invoice finance and asset finance are the products included in the scheme, and will be offered at commercial rates of interest.

If your business is eligible, you will be able to access the Coronavirus Large Business Interruption Loan Scheme by the end of April 2020. A list of approved lenders will be provided by the British Business Bank.

To access the funding, you need to confirm your business turnover is between £45 million and £500 million. You must provide a borrowing proposal that would be considered viable by the lender if the coronavirus disruption was taken out of the equation.

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