Chancellor expands loan scheme for large businesses

17 April 2020 | General

The government will launch an emergency loan scheme for large businesses on Monday.

The Coronavirus Large Business Interruption Loan Scheme will be available to all firms with a turnover of more than £45m, who will be able to borrow up to £25m.

Companies with a turnover of more than £250m can borrow up to £50m.

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

Firms with turnovers of more than £500mn were originally not eligible 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 comes after consultation with businesses.

The scheme will be available through a series of lenders, which will be listed on the British Business Bank website, with the government providing a guarantee of 80% on each loan.

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.”

This post has originally been featured in Property Wire.