Who can apply?

• UK-based businesses that are existing Clydesdale Bank customers with an annual group (if applicable) turnover over £45 million.
• Businesses should have a borrowing proposal which, were it not for the current pandemic, would be considered viable by us. Lenders need to believe that the provision of finance will enable the business to trade out of any short-to medium term difficulty.
• Businesses (or groups, if applicable) should not have applied or be applying for Bank of England’s Covid Corporate Financing Facility (CCFF), the Bounce Back Loan Scheme (BBLS) or the Coronavirus Business Interruption Loan Scheme (CBILS).
• Banks, building societies, insurers, reinsurers, state funded primary and secondary schools and public sector organisations are not eligible for this scheme.

How does it work?

• Businesses (or groups, if applicable) can borrow up to £200m in aggregate for a maximum term of three years.
• Clydesdale Bank can only provide a CLBILS facility as a term loan.
• The maximum amount that Clydesdale Bank can provide to a business (or group, if applicable) is £50m.
• The Government Department for Business, Energy and Industrial Strategy will provide lenders with a guarantee for 80% of the loan.
• Borrowers will always remain 100% liable for the debt.
• If a business borrows less than £250,000 through the CLBILS scheme, no new personal guarantee can be taken as part of the deal.
• For CLBILS facilities over £250,000 a personal guarantee can be taken, but claims cannot exceed 20% of losses after all other recoveries have been applied.
• All companies borrowing through CLBILS will be subject to certain restrictions including in relation to the payment of dividends.
• Companies borrowing more than £50m in aggregate through CLBILS will also be subject to prior notification to the British Business Bank and further restrictions on dividend payments, senior pay and share buy-backs during the period of the loan. You can find out more on the British Business Bank website.
• If accepted for a CLBILS loan, businesses (or groups, if applicable) cannot use the Bank of England’s Covid Corporate Financing Facility (CCFF), the Bounce Back Loan Scheme (BBLS) or the Coronavirus Business Interruption Loan Scheme (CBILS) if the CLBILS facility is outstanding.

Important information

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy and industrial Strategy (BEIS). British Business Bank plc is wholly owned by HM Government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). Full details on CLBILS and the list of participating CLBILS lenders can be found on the British Business Bank website

As with any other commercial transaction, the borrower is always responsible for repayment of the full value of any facility supported by CLBILS.

The guarantee is to the lender, and not the business.