Chancellor Expands Coronavirus Loan Scheme for Large Firms

Chancellor Expands Coronavirus Loan Scheme for Large Firms

Rishi Sunak has unveiled the final details of the Coronavirus Large Business Interruption Loan Scheme ahead of its launch on Monday 20 April.

The government-backed loan scheme for large businesses affected by coronavirus (COVID-19) has been expanded to cover all viable UK firms, the Chancellor has announced.

Outlining further details of the Coronavirus Large Business Interruption Loans Scheme (CLBILS) ahead of its launch next week, Rishi Sunak confirmed that all firms with a turnover of more than £45 million will now be able to apply for up to £25 million of finance, and up to £50 million for those with a turnover of more than £250 million.

Businesses with turnovers of more than £500 million were originally not eligible for the scheme, which will help firms that do not qualify for the existing Coronavirus Business Interruption Loan Scheme – for small and medium-sized businesses – and the Bank of England COVID-19 Corporate Financing Facility – for investment grade companies.

The move, which comes after consultation with businesses, aims to ensure even more firms are able to benefit from government support. Lenders will be provided with a government-backed guarantee of 80% on each loan, giving them 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.

The Government is also clarifying the position for firms owned by private equity, which will be able to access the guaranteed loan schemes.

The Chancellor of the Exchequer, Rishi Sunak, said:

‘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.’

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