Industry News

Chancellor Expands Loan Scheme for Large Businesses

By Jess Browne-Swinburne

17 Apr 2020

A government-backed loan scheme for large businesses affected by coronavirus has been expanded to cover all viable firms, the Chancellor announced.

· 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

Expanding on the previously announced scheme, Large Business Interruption Loan Scheme will now all eligible businesses with a turnover of more than £45 million to apply for up to £25 million of finance, and up to £50 million for firms with a turnover of more than £250 million.

The Government states that it will provide lenders with a guarantee of 80 per cent on each loan to give lenders further confidence in continuing to provide finance. The scheme will be available through a series of accredited lenders, which will be listed on the British Business Bank website.

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

Further information here: https://www.gov.uk/guidance/apply-for-the-coronavirus-large-business-interruption-loan-scheme

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