Chancellor Expands Large Business Loan Program

0
  • Rishi Sunak unveils latest details of large business disruption loan program against coronavirus ahead of launch on Monday
  • all viable businesses with turnover above £ 45million will be able to apply for government backed support
  • businesses with turnover over £ 250million can borrow up to £ 50million from lenders
  • this complements existing support, including the Covid Business Funding Mechanism and the Coronavirus Business Interruption Loan Program

A government-backed loan program for large businesses affected by the coronavirus has been extended to cover all viable businesses, the Chancellor announced today.

Describing more details on the Large Business Coronavirus Interruption Loan Program (CLBILS) ahead of its launch on Monday, Rishi Sunak said all companies with turnover over £ 45million will now be able to apply up to £ 25million in funding, and up to £ 50million for companies with revenues over £ 250million.

Businesses with a turnover of over £ 500million were originally not eligible for the program, which is set up to help businesses that do not qualify for the disruption loan program Coronavirus activity – for small and medium-sized businesses – and the Bank of England Covid Corporate Finance Facility – for investment grade businesses. The move, which comes after extensive consultations with business, will ensure that even more businesses can benefit from government support.

The Chancellor of the Exchequer, Rishi Sunak, said:

I want to make sure that no viable business slips through our backstop of support as we help protect jobs and the economy. That is why we are expanding this generous program for large companies.

This is a national effort and we will continue to work with the financial services industry to ensure that our £ 330 billion government support, through loans and guarantees, reaches as many businesses in need. as possible.

Business Secretary Alok Sharma said:

The coronavirus has taken a heavy toll on businesses of all sizes across the UK. Expanding this program will provide large businesses with the support they need during the pandemic, helping to provide job security for thousands of people and protect our economy.

The government will provide lenders with an 80% guarantee on each loan to give them more confidence in continuing with their financing.

The program will be available from a series of accredited lenders, which will be listed on the British Business Bank website.

This support complements the unprecedented help available to businesses large and small, including CBILS, CCCFF, Tax Deferrals, the Coronavirus Job Retention Scheme, Cash Grants for Small Businesses and covering the cost of allowances. legal illness.

The government recognizes that many start-ups and start-ups face challenges and is working with industry to assess them and consider other ways to provide support.

More information

Assistance available:

size of the company Turnover Turnover> £ 45m Investment category
Coronavirus Business Interruption Loan Program X
Coronavirus Large Business Interruption Loan Program X X
Covid Corporate Finance Facility X
  • The Business Secretary and the Economic Secretary to the Treasury will co-chair a meeting of the Business Finance Council today to discuss the progress made so far by CBILS and take stock of CLIBLS. Small Business Minister Paul Scully and representatives from UK Finance, the Finance & Leasing Association, UK Chambers of Commerce, Institute of Chartered Accounts of England and Wales, Federation of Small Businesses, British Business Bank, Barclays UK, Bibby plc, CYBG, HSBC UK, Lloyds Banking Group, NatWest Group, Santander UK and Funding Circle. Small Business Commissioner Philip King will also be in attendance.
  • The government is also clarifying the position of privately owned companies, which will be able to access guaranteed loan programs.

Business reactions

IoD CEO Jonathan Geldart said:

The government deserves credit for having shown its willingness to continue to adapt its response to the coronavirus. This development of the loan system is expected to help medium-sized businesses, which play a vital role in their supply chains and local communities. This crisis justifies exceptional measures and we must keep our foot on the gas to obtain support for the companies that need it.

Rain Newton-Smith, chief economist at CBI, said:

These measures defined by the Chancellor will go a long way in supporting mid-cap companies, some of which are the UK’s largest and most iconic regional employers.

This program is clearly aimed at helping several thousand medium-sized businesses, rather than those already operational for small and large businesses.

The flexibility the government has shown in recent weeks to do everything possible for small, medium and large businesses will have protected many jobs. What is essential now is that the loans be extended as easily and quickly as possible to the businesses that need them.

BCC CEO Adam Marshall said:

Once again, it’s good to see the Chancellor listening to real-world business concerns and extending her assistance to good companies facing severe cash flow constraints due to the coronavirus crisis. These changes fill a significant gap in government support and could make a real difference to medium and large businesses navigating difficult circumstances. It is now crucial to ensure that this enhanced support reaches companies in difficulty as quickly as possible.

Stephen Phipson, Managing Director of Make UK, said:

This is a welcome announcement from the Chancellor that will help both medium and large businesses that have not been able to access help so far. The situation remains fluid and as we assess the details, we will continue to work closely with the Treasury to ensure that businesses that need help can turn on the tap when needed.

Share.

Comments are closed.