The newly approved lenders include The Co-operative Bank, Cynergy Bank, OakNorth Bank, Starling Bank and Funding Circle. A full list of approved lenders can be found here.
Coronavirus Large Business Interruption Loan Scheme (CLBILS)
The Coronavirus Large Business Interruption Loan Scheme became operational with approved lenders on 20 April and will provide finance opportunities to mid-to-large UK businesses with turnover in excess of £45m (being the upper limit of the existing CBILS). Facilities of up to £25m can be made available via the Scheme for businesses with a turnover between £45m and £250m and facilities up to £50m for businesses with a turnover in excess of £250m. The Scheme is available to businesses who are experiencing cash flow disruptions due to lost or deferred revenues during to the pandemic.
New Future Fund
On 20 April, Rishi Sunak announced the introduction of the coronavirus Future Fund to provide support to the UK’s most innovative businesses who have been unable to access other government support initiatives (such as CBILS) due to being either pre-revenue or pre-profit and typically reliant on equity investment. An initial commitment of £250m will be made by the government and will be provided by way of convertible loans ranging from £125k to £5m, subject to at least equal match funding from private investors.
It is intended that the Future Fund will be launched for applications in May and will initially be open until the end of September. More information about the Future Fund can be found here.
More information about the CBILS and CLBILS can be found on the British Business Bank’s website and from our previous update on the CBILS.