{"value":{"id":1190335,"memberId":4014,"member":null,"memberRole":"Secretary of State for Business, Energy and Industrial Strategy","uin":"HCWS198","dateMade":"2020-04-27T00:00:00","answeringBodyId":201,"answeringBodyName":"Department for Business, Energy and Industrial Strategy","title":"Departmental Contingent Liability Notification (Coronavirus Large Business Interruption Loan Scheme) ","text":"<p>I am tabling this statement for the benefit of Honourable and Right Honourable Members to bring to their attention the details of the Coronavirus Large Business Interruption Loan Scheme.</p><p> </p><p>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.</p><p> </p><p>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:</p><p> </p><ul><li>the percentage of the remaining balance of each loan that is guaranteed by the Government will be 80 per cent;</li></ul><p> </p><ul><li>there will be no portfolio cap for the lender, enabling lenders to benefit from capital relief to help lenders to price loans competitively;</li></ul><p> </p><ul><li>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 per cent of losses post-business recovery);</li></ul><p> </p><ul><li>interest charged at commercial rates (but lenders are expected to ‘pass through’ benefit of the guarantee);</li></ul><p> </p><ul><li>businesses with turnover of up to £250m can access a maximum debt facility of £25m, those with higher turnovers can access facilities of up to £50m; and</li></ul><p> </p><ul><li>facilities will be available with a maximum term of three years.</li></ul><p> </p><p>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.</p><p>For more information on this and other support for business, please go to <a href=\"https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.businesssupport.gov.uk%2F&data=02%7C01%7CWilliam.Salt%40beis.gov.uk%7Cc9c4402a71b3478883c408d7cf5a6811%7Ccbac700502c143ebb497e6492d1b2dd8%7C0%7C0%7C637205859518661589&sdata=pftW3Wn50jCIP8%2FyqN8Cp9e7Y5MGI9saWzuN9VXte80%3D&reserved=0\" target=\"_blank\">https://www.businesssupport.gov.uk/</a></p><p> </p>","house":"Commons","noticeNumber":1,"hasAttachments":false,"hasLinkedStatements":false,"linkedStatements":null,"attachments":[]},"links":[{"rel":"self","href":"/Statements/1190335","method":"GET"}]}