Government expands loan scheme for large businesses

The Government-backed loan scheme for large businesses affected by Coronavirus has been expanded to cover all viable firms, the Chancellor Rishi Sunak revealed yesterday.

Outlining further details of the Coronavirus Large Business Interruption Loans Scheme (CLBILS) ahead of its launch on Monday, the Government has announced 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 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 (CBILS) – for small and medium sized businesses – and the Bank of England Covid Corporate Financing Facility (CCFF) – for investment grade companies. The move, which comes after extensive consultation with businesses, will ensure even more firms are able to benefit from Government support.

Lenders will be given a guarantee by Government of 80 per cent on each loan to give them further confidence in continuing to provide finance.

The scheme will be available through a series of accredited lenders, listed on the British Business Bank website.

This scheme complements the support available for businesses large and small, including CBILS, CCFF, tax deferrals, the Coronavirus Job Retention Scheme, cash grants for small businesses, and covering the cost of statutory sick pay.

Firm size Turnover < £45m Turnover > £45m Investment grade
Coronavirus Business Interruption Loan Scheme x
Coronavirus Large Business Interruption Loan Scheme x x
Covid Corporate Financing Facility x

If you or a client are considering applying to the Government loan scheme to support your business during this unprecedented time, please contact your usual Beavis Morgan Client Partner or email info@beavismorgan.com.

For further information about the Government measures to protect individuals and businesses, visit our COVID-19: Support for UK businesses hub.

You may also wish to read:

How the Beavis Morgan group is supporting businesses struggling to access emergency cash loans

Coronavirus Business Interruption Loan Scheme: Frequently asked questions and their answers – For lenders

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