Chancellor expands loan scheme for large businesses

large-business-loan-scheme-update

The chancellor has expanded the government-backed Coronavirus Large Business Interruption Loan Scheme to cover all viable firms.

Ahead of the scheme’s launch on Monday (April 20), Sunak unveils the final details of Coronavirus Large Business Interruption Loan Scheme.

Who is eligible for the Coronavirus Large Business Loan Scheme?

  • all viable businesses with turnover of more than £45m will be able to apply for 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

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 £330bn of government support, through loans and guarantees, reaches as many businesses in need as possible.”

Read our blog on previously announced Coronavirus Business Interruption Loan Scheme (CBILS)

Originally businesses with turnovers greater than £500m could not apply for the loan scheme.

The move comes after consultation with businesses. It 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. This act will give lenders further confidence in continuing to provide finance.

The scheme will be available through a series of accredited lenders. Government will list them on the British Business Bank website.

Alok Sharma, 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.”

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