- All viable businesses with turnover of more than £45m will be
able to apply for UK Government-backed support;
- Firms with turnover of more than £250 million can borrow up
to £50 million from lenders;
- This complements existing support including the Covid
Corporate Financing Facility and the Coronavirus Business
Interruption Loan Scheme.
A UK government-backed loan scheme for large businesses affected
by coronavirus has been expanded to cover all viable firms, the
Chancellor announced today.
Outlining further details of the Coronavirus Large Business
Interruption Loans Scheme (CLBILS) ahead of its launch on Monday,
said 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 firms with a turnover of more than £250
million.
Business with turnovers of more than £500 million 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 UK Government support.
The Chancellor of the Exchequer, , 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.
Secretary of State for Wales, , said:
We are completely committed to protecting businesses of all
sizes during this emergency. By expanding this scheme to cover
even more businesses, we are ensuring that as many companies as
possible across the UK can access the support they need.
The UK Government will continue to do whatever it takes to help
all those who need it. The £330 billion of UK Government
support for businesses small and large will help us to get
through this emergency together, protecting jobs and the
economy while we work to tackle the coronavirus.
The Business Secretary, , said:
Coronavirus has struck a heavy blow against businesses of all
sizes across the UK. Expanding this scheme will provide larger
firms with the support they need during the pandemic, helping
to provide job security to thousands of people and protect our
economy.
The UK 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 UK 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.
