The Government has today (19 May) announced an extension of the size of loans available to larger businesses which have been affected by the coronavirus pandemic.
The Treasury said companies will now be able to receive up to £200 million from the Coronavirus Large Business Interruption Loan Scheme (CLBILS), which previously had a maximum payout of £50 million. The loans under the expanded scheme will be made available to firms from Tuesday, 26th May.
Simon Toseland, a Director of Prop-Search, said: “The CLBILS scheme was introduced last month to support companies with sales of between £45 million and £250 million, and was intended for firms who are ineligible for the Coronavirus Business Interruption Loan Scheme (CBILS) which is aimed at smaller businesses.”
“Today’s change could make a real difference to larger firms and help ensure that businesses of all sizes get access to the finance they need to help weather this unprecedented economic environment.”
Reports from Government say it has handed out £359 million through the CLBILS scheme, while it has provided 36,000 loans worth more than £6 billion through the CBILS scheme.
Economic Secretary to the Treasury John Glen 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.”
The Treasury also added that companies borrowing more than £50 million through CLBILS will be subject to restrictions on dividend payments, senior pay and share buy-backs during the period of the loan.