I am tabling this statement for the benefit of hon. and right hon. Members to bring to their attention the details of the Coronavirus Large Business Interruption Loan Scheme.
Like the Coronavirus Business Interruption Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme will be facilitated by the Government-owned British Business Bank and delivered through its delivery partners. Lenders will offer loans of between £30,000 and £50 million to support viable businesses with a turnover of £45 million and above that are affected by the coronavirus outbreak. There will be no limit on the number and aggregate value of loans that can be made under the scheme.
The scheme is available on a temporary basis from 20 April for an initial six months, and can be extended as required. The key parameters of the scheme are as follows:
the percentage of the remaining balance of each loan that is guaranteed by the Government will be 80%;
there will be no portfolio cap for the lender, enabling lenders to benefit from capital relief to help lenders to price loans competitively;
a personal guarantee approach that mirrors the existing CBILS programme (no personal guarantees permitted on loans below £250,000, and personal guarantees up to a maximum of 20% of losses post-business recovery);
interest charged at commercial rates (but lenders are expected to ‘pass through’ benefit of the guarantee);
businesses with turnover of up to £250 million can access a maximum debt facility of £25 million, those with higher turnovers can access facilities of up to £50 million; and
facilities will be available with a maximum term of three years.
The new scheme was launched on 20 April. The Government will be subject to a new statutory contingent liability, and I will be laying a departmental minute today containing a description of the liability undertaken.
For more information on this and other support for business, please go to: https://www.businesssupport.gov.uk/