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United Kingdom: COVID Corporate Financing Facility, Coronavirus Large Business Interruption Loan Scheme, Coronavirus Business Interruption Loan Scheme, the Future Fund: will they help your business?

Overview

In an attempt to provide support to as many businesses as possible as they battle the effects of the COVID-19 pandemic, and to deploy the GBP 330 billion of promised government support, the Chancellor is today launching the Coronavirus Large Business Interruption Loan Scheme as an addition to the ‘net of support’ provided by the two previously launched schemes. He has also announced the details of the Future Fund, which will support some of the UK’s most innovative start-up businesses.

Contents

The details of all four schemes are still evolving and being adapted in response to feedback. This alert sets out what we know so far about:

  • The COVID Corporate Financing Facility (CCFF).
  • The Coronavirus Business Interruption Loan Scheme (CBILS).
  • The new Coronavirus Large Business Interruption Loan Scheme (CBILS).
  • The Future Fund.

It is clear that HM Treasury, the Bank of England, the British Business Bank and the lending community generally are focused on utilising these schemes to provide support to British businesses that are running into COVID-19 related issues, but will this be enough?

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Author

Lynn Rosell Rowley is a partner in the Banking and Finance Department in London. She joined Baker McKenzie in 2007 and became a partner in July 2012. Lynn previously practiced in the finance team at Wragge & Co LLP, where she advised on a broad range of banking and finance areas. Prior to university, she spent six years working for Barclays Bank plc in a variety of roles.

Author

Matthew specializes in cross-border leveraged and acquisition finance, corporate lending, debt restructurings and general financing matters across a range of sectors. He represents a variety of clients, including financial institutions, private credit funds, infrastructure funds, corporate borrowers and private equity sponsors on a wide range of financing products. Matthew is ranked as a “Next Generation Partner” by Legal 500 UK 2020 and as a leading individual by Chambers UK. He has been described as "commercial and technically strong” (Legal 500 UK 2020) and a "technically capable and commercial" lawyer whose "broad-ranging expertise includes direct lending work" (Legal 500 UK 2020). Chambers UK 2020 Banking & Finance calls him "a very strong lawyer with good attention to detail and a strong technical background. He is easy to work with and commercially sensible, an asset on any deal.”

Author

Nick Tostivin is Head of the Firm’s Banking & Finance Practice Group in London. He regularly advises clients on all aspects of general bank lending and acquisition finance. Nick is listed as a leading practitioner in his field by Chambers UK, and is likewise recognized for his work by Legal 500 UK.

Author

Geoff O'Dea is a Partner in the Firm's Banking & Finance Practice Group in London. He is co-author of a leading textbook on schemes of arrangement and has contributed chapters on insolvency to other texts including Expedited Corporate Restructuring in the EU, which were published by the Oxford University Press. He also frequently lectures and participates in guest panels on restructuring matters.

Author

Matthew is a Banking partner in Baker McKenzie's London office focusing on leveraged and acquisition financing and restructuring.

Author

Bevis Metcalfe is a partner in Baker McKenzie’s Finance Group based in London. Bevis focuses his practice on advising credit funds, private equity sponsors and banks in connection with corporate restructurings and leveraged acquisition and asset-backed financings. Bevis' experience includes a partnership secondment to a leading investment bank.

Author

Simon Porter is a member of the Firm’s Structured Capital Markets Group in the London office, where he works on a wide range of capital markets and structured finance transactions. His practice includes specialist advice to corporate trustees in capital markets transactions.