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19.05.20

Coronavirus Business Loan for larger businesses extended to £200m

The HM Treasury has announced today (May 19) the extension of the loan size available through the Coronavirus Large Business Interruption Loan Scheme (CLBILS) from £50m to £200m.

The amount increase will support large firms that don’t qualify for the Bank of England’s Covid Corporate Financing Facility (CCFF) meet cashflow needs during and after the crisis.

It comes after discussions between Government, lenders and business groups, who have decided that the larger loan sizes are to be available from May 26.

John Glen, the Economic Secretary to the Treasury, said:

“We’re determined to support businesses of all sizes throughout this crisis and our loans and guarantees have already provided over £32 billion to thousands of firms.

Today we’re increasing the maximum loan to £200 million to make sure companies get the help they need.”

READ MORE: Bury council opposes plans to re-open schools in June

READ MORE: Council leaders call for £5bn income guarantee backed by Treasury

So far since the outbreak began, over £32bn has been delivered to businesses through loans and guarantees.

This breaks down into £8.3bn in Bounce Back Loans, over £6bn through the Coronavirus Business Interruption Loan Scheme, £18.7bn through the CCFF and £359m through the CLBILS.

Borrowers under CLBILS who borrow more than £50m will have restrictions of dividend payments, senior pay and share buy-backs through the loan period.

These restrictions will stretch to CCFF participants looking to borrow money later than 12 months from today to help with liquidity during the crisis.

The scheme gives the lender a Government-backed partial guarantee (80%) on the balance of the facility, with the borrower liable for the entire debt.

On June 4, the Bank will publish a list of companies who have benefitted under the CCFF scheme.

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