A government-backed loan scheme for large businesses affected by coronavirus has been expanded to cover all viable firms, the Chancellor has announced.
- Rishi Sunak unveiled the final details of Coronavirus Large Business Interruption Loan Scheme ahead of launch on Monday
- all viable businesses with turnover of more than £45m will be able to apply for government-backed support
- firms with turnover of more than £250m can borrow up to £50m from lenders
- this complements existing support including the Covid Corporate Financing Facility and the Coronavirus Business Interruption Loan Scheme
A government-backed loan scheme for large businesses affected by coronavirus has been expanded to cover all viable firms, the Chancellor announced last night.
Outlining further details of the Coronavirus Large Business Interruption Loans Scheme (CLBILS) ahead of its launch on Monday, Rishi Sunak said all firms with a turnover of more than £45m will now be able to apply for up to £25m of finance, and up to £50m for firms with a turnover of more than £250m.
Business with turnovers of more than £500m were originally not eligible for the scheme, which is being set up to help firms who do not qualify for the existing Coronavirus Business Interruption Loan Scheme – for small and medium sized businesses - and the Bank of England Covid Corporate Financing Facility – for investment grade companies. The move, which comes after extensive consultation with businesses, will ensure even more firms are able to benefit from government support.
The government will provide lenders with a guarantee of 80% on each loan to give lenders further confidence in continuing to provide finance.
The scheme will be available through a series of accredited lenders, which will be listed on the British Business Bank website.
This support complements the unprecedented help available for businesses large and small, including CBILS, CCCFF, tax deferrals, the Coronavirus Job Retention Scheme, cash grants for small businesses, and covering the cost of statutory sick pay.
The government recognises many start up and early stage companies are facing challenges and are working with industry to assess these and consider further ways to offer support.
Read the full Government announcement here: https://www.gov.uk/government/news/chancellor-expands-loan-scheme-for-large-businesses