Expansion of support available through the Coronavirus Large Business Interruption Loan Scheme.

Update for businesses – Expansion of support available through the Coronavirus Large Business Interruption Loan Scheme.

A report released by HM Treasury confirms that the Chancellor has expanded the government-backed loan scheme for large businesses affected by coronavirus.

Rishi Sunak, the Chancellor of the Exchequer, has unveiled the final details of the Coronavirus Large Business Interruption Loan Scheme (CLBILS), ahead of its launch on Monday, which complements existing support including the Covid Corporate Financing Facility and the Coronavirus Business Interruption Loan Scheme.

The Chancellor has said 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 those with a turnover of more than £250 million will be able to apply for up to £50 million.

Business with turnovers of more than £500 million were originally not eligible for the scheme. The CLBILS scheme was originally set up to offer support for small and medium sized businesses. The Bank of England Covid Corporate Financing Facility was set up to offer support for investment grade companies. This expansion of suport, which comes after extensive consultation with businesses, will ensure that even more firms are able to benefit from government support.

The Chancellor has stated:

“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.”

The Business Secretary, Alok Sharma, has added to this, saying:

“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.”

Through the CLBILS scheme, the government will provide lenders with a guarantee of 80% on each loan, which will give lenders further confidence in continuing to provide finance during these uncertain times. It has also been confirmed that the scheme will be available through a series of accredited lenders, which will be listed on the British Business Bank website.

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

The government recognises that every business is currently facing challenges, but that the most affected include many start up and early stage companies. The Chancellor has confirmed that the Government are working closely with industry to assess these challenges and will consider further ways to offer support.