OakNorth Bank secures additional CBILS allocation

UK: OakNorth Bank has approved over £600 million in new loans since lockdown began, and the British Business Bank has since approved an additional CBILS allocation.

The Coronavirus Business Interruption Loan Scheme (CBILS) is available to UK businesses with a turnover of no more than £45 million per yer.

Since lockdown began on 23 March, OakNorth has lent £220 million through the CBILS and the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

Notable transactions include a loan to Signet Hotel Group to support the refurbishment of the Mitre Hotel in Hampton Court; a loan to The Jade Hotel in South Kensington for renovation works; and a loan to Red Oak Taverns to asset with working capital requirements and contractual obligations.

Ben Barbanel, head of debt finance at OakNorth Bank, said: “While lockdown measures have continued to ease over the past month, things have hardly gone back to normal and there continues to be uncertainty around a potential second wave. It is with this in mind that we must continue to support experienced management teams and businesses that were viable pre-pandemic. This additional allocation from the British Business Bank will enable us to continue doing that in addition to the lending we’re doing outside of the schemes. We look forward to continuing our work with the British Business Bank.”

In April, OakNorth called on the government to review the CBILS to better support British businesses through the crisis. It proposed increasing the business turnover limit from £45 million to £200 million, and the maximum loan amount increased from £5 million to £10 million, so that medium-sized companies are also protected.

BHN spoke to Barbanel following OakNorth’s onboarding onto the CBILS to hear about the company’s current and future lending. Take a listen to the podcast here. 

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