The Government have introduced a new Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The new scheme provides a Government guarantee of 80% to enable firms with an annual turnover of between £45 million and £500 million to access loans of up to £25 million if they are impacted by coronavirus. Facilities backed by a guarantee under CLBILS will be offered at commercial rates of interest through commercial lenders.
The Government’s 80% guarantee on individual loans is for businesses that would be otherwise unable to access the finance they need though lenders will still conduct their usual credit risk checks. The scheme allows lenders to specifically support businesses that were viable before the COVID-19 outbreak but now face significant cash flow difficulties that would otherwise make their business unviable in the short term.
Further information on the scheme can be found here.