The Chancellor, Rishi Sunak, has announced that the government-backed loan scheme for large businesses affected by coronavirus has been expanded to cover all viable firms. The Chancellor said all firms with a turnover of more than £45 million will now be able to apply for up to £25 million of finance, and up to £50 million for firms with a turnover of more than £250 million.
Business with turnovers of more than £500 million were originally not eligible for the scheme, which is being set up to help firms who do not qualify for the existing Coronavirus Business Interruption Loan Scheme which is for small and medium sized businesses, and the Bank of England Covid Corporate Financing Facility which is for investment grade companies. The move, which comes after extensive consultation with businesses, will ensure even more firms are able to benefit from government support.
The Government will provide lenders with a guarantee of 80% 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.
The Government said that it recognises that many start-up and early stage companies are facing challenges and it is working with industry to assess these and consider further ways to offer support. To read the Government’s announcement in full, click here.