Barclays launches CLBIL scheme amid coronavirus
Barclays is extending its support to businesses not covered by the Coronavirus Business Interruption Loan scheme (CBILS), and not eligible for support under the COVID-19 Corporate Finance Facility (CFF), through the launch of the Coronavirus Large Business Interruption Loan scheme (CLBILS).
Backed by a UK government guarantee announced by Chancellor Rishi Sunak on 16 April, Barclays will provide lending of up to £50 million for firms with a turnover of over £250 million, and of up to £25 million for businesses with turnover from £45 million up to £250 million in order to help support them through issues associated with COVID-19.
Business with turnovers of more than £500 million were originally not eligible for the scheme, which is being set up to help firms who do not qualify for the existing CBILS scheme and the CFF for investment grade companies. The move, which comes after extensive consultation with businesses, will ensure even more firms are able to benefit from government support.
The government will provide lenders with a guarantee of 80% on each loan to give lenders further confidence in continuing to provide finance. The scheme will be available through a series of accredited lenders, such as Barclays, and will be listed on the British Business Bank website.
The type of lending available includes term loans and revolving credit facilities of up to three years (subject to credit approval), with a minimum facility term of three months.
“Barclays is absolutely committed to supporting all businesses through this incredibly challenging period. This new scheme will enable us to provide vital funding to those businesses not currently eligible for the [current government schemes], but who contribute hugely to the UK economy,” says Tasnim Ghiawadwala, head of Barclays UK Corporate Banking.
In addition to offering clients access to all three of the government business support schemes:
Its network of relationship directors is working with clients and have been assisting them with the individual challenges they face such as working capital, liquidity, supply chains, and FX, to provide the appropriate support.
Through this network, it aims to aid short term cash flow pressures with measures such as capital repayment holidays, temporary increases to overdrafts and extending existing trade facilities.
“We are also running weekly COVID-19 support calls throughout this period, which clients can dial-in to in order to discuss economic impacts, what we are seeing and expect to see in the FX and commodity markets, and supply chain impacts and options,” the bank adds in its report.