Monday, 20 April 2020
Chamber responds to Coronavirus Large Business Interruption Loan Scheme
East Midlands Chamber (Derbyshire, Nottinghamshire, Leicestershire) has welcomed the launch of a new initiative to help larger businesses affected by the ongoing Covid-19 pandemic.
The new Coronavirus Large Business Interruption Loan Scheme (CLBILS) aims to provide the UK’s larger employers with access to temporary emergency funding. It means firms with turnover of between £45m and up to £250m can borrow up to £25m, while firms with turnover of more than £250m can borrow up to £50m.
The scheme provides lenders with a Government-backed partial (80%) guarantee against the outstanding facility balance and is open to businesses which have not received a facility under the Bank of England's Covid Corporate Financing Facility.
It will be available through a range of lenders and partners accredited by the British Business Bank.
Chamber Chief Executive Scott Knowles said:
“The UK’s larger businesses are facing different but no less critical pressures to their SME counterparts, so this latest intervention, provided it delivers what’s intended, will provide welcome relief.
“Cash flow is the lifeblood of any business, so ensuring that credit and funding is available to those firms which need it most is what will help keep them ticking over until we reach the point where the economy can fully reboot.
“The economy is reliant on the jobs, wages and productivity that larger businesses support, so it’s crucial that they are allowed to keep trading as long as is viable and are able to make decisions regarding staffing levels, furlough leave and other capacity-related issues with confidence. Alleviating their short-term funding pressures will allow them to do so.
“Government needs to keep a close eye on how well this scheme performs in it’s opening days to ensure that any issues can be resolved quickly to give it the best chance of having its desired effect.”