The changes to CLBILS announced by HM Treasury on 19 May have now come into effect. As you will be aware, CLBILS facilitates access to finance for mid-sized and larger businesses with a group turnover of more than £45m affected by the Coronavirus outbreak.
• The maximum amount available through CLBILS to a borrower and its group has now increased from £50m to £200m.
• Term loans and revolving credit facilities over £50m will be offered by CLBILS lenders which have secured additional accreditation.
• The maximum size for invoice finance and asset finance facilities remains at £50m.
• Companies borrowing more than £50m through CLBILS will be subject to further restrictions on dividend payments, senior pay and share buy-backs during the period of the loan.
As a result, larger firms which do not qualify for the Bank of England’s Covid Corporate Financing Facility will be better able to access enough finance to meet their cashflow needs during the outbreak.
Take a look at further information on changes, including new provisions on seniority of CLBILS facilities, on the British Business Bank website.