Government is extending maximum loan size available through the Coronavirus Large Business Interruption Loan Scheme from £50m to £200m
Businesses will now be able to benefit from larger loans under the Coronavirus Large Business Interruption Loan Scheme (CLBILS), the government has announced
The maximum loan size available under the scheme will be increased from £50m to £200m to help ensure those large firms which do not qualify for the Bank of England’s Covid Corporate Financing Facility (CCFF) have enough finance to meet cashflow needs during the crisis.
The expanded loans, which have been introduced following discussions with lenders and business groups, will be available from 26 May.
Companies borrowing more than £50m through CLBILS will be subject to restrictions on dividend payments, senior pay and share buy-backs during the period of the loan, including a ban on dividend payments and cash bonuses, except where they were previously agreed.
These restrictions will also apply to CCFF participants that wish to borrow money beyond 12 months from today. This will ensure that the money is used to keep the company going through the crisis. The Bank will also publish a list of companies who are benefitting under CCFF on 4 June.
Under CLBILS, companies can borrow up to 25% of turnover, up to a maximum of £200m.
Further information on CLBILS can be found here: CLBILS
Further information on CCFF can be found: CCFF