Barclays announced on Monday it has opened up the Coronavirus Large Business Interruption Loan Scheme (CBILS) to help large corporate banking clients that are impacted by the COVID-19 pandemic.
Barclays reported that through the program, which is backed by a UK Government guarantee, it 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. The type of lending available includes term loans and revolving credit facilities of up to 3 years (subject to credit approval), with a minimum facility term of 3 months. Tasnim Ghiawadwala, Head of Barclays UK Corporate Banking, further explained:
“Barclays is absolutely committed to supporting all businesses through this incredibly challenging period. This welcome new scheme will enable us to provide vital funding to those businesses not currently eligible for the Coronavirus Business Interruption Loan scheme or the COVID-19 Corporate Finance Facility, but who contribute hugely to the UK economy.”
Barclays noted its Corporate Banking is “strongly positioned” to support UK business as they tackle the challenges posed by COVID-19. In addition to offering clients access to all three of the Government business support schemes:
- Barclays’ network of Relationship Directors remains in close working contact with clients and has 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, Barclays is aiding short term cash flow pressures with measures such as capital repayment holidays, temporary increases to overdrafts and extending existing trade facilities.
- Barclays is 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.
Earlier today, Chancellor of the Exchequer Rishi Suni revealed the final details of CBILS. The Chancellor stated:
“I want to ensure that no viable business slips through our safety net of support as we help protect jobs and the economy. That is why we are expanding this generous scheme for larger firms. This is a national effort and we’ll continue to work with the financial services sector to ensure that our £330 billion of government support, through loans and guarantees, reaches as many businesses in need as possible.”
Besides Barclays, Clydesdale Bank, Danske Bank, HSBC, Lloyds Bank, and Santander are also accredited lenders for CLBILS.