The Chancellor has announced an expansion to the UK government-backed loan scheme for large businesses affected by coronavirus in a bid to help larger businesses through this crisis.
- 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
UK Government-back loan scheme
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 £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
Not originally eligible for the scheme, business with turnovers of more than £500 million may now qualify. This move has been 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.
Giving lenders confidence
The UK Government will provide lenders with a guarantee of 80% on each loan to give lenders further confidence in continuing to provide finance.
Where is this scheme available?
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 existing 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.
Start up and early stage companies
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.
We hope this information helps you and we are here for you during this difficult time. We will continue to keep you updated as the Government releases new information. Our business contingency plan is in place and we will do everything we can to support our clients during this uncertain period, please do not hesitate to contact us here if you have any concerns or queries.
Visit our COVID19 Business Hub for more information
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The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above
