The Government has expanded its £330bn Coronavirus Loan Scheme allowing companies with a larger turnover to apply for up to £25 million of finance.
Businesses with a turnover of more than £45m can access funding through the new Coronavirus Large Business Interruption Loan Scheme (CLBILS), and Chancellor Rishi Sunak announced further details on April 21, resulting in the scheme being expanded to cover all viable firms, including those with annual turnovers of over £500m.
Businesses with turnovers of more than £500m were originally not eligible for the scheme. Now the full extent of the scheme means that all firms with a turnover of more than £45m will now be able to apply for up to £25m of finance, and up to £50m for firms with a turnover of more than £250m, including those that exceed £500m.
The Treasury started processing loan applications from large firms affected by COVID-19 as of Monday April 27, 2020. For full details on applying and approaching a lender, access the British Business Bank website.
The Government said the new loans would be 80% guaranteed by the state and added that banks must not request personal guarantees on any loans under £250,000.
This complements existing support including the Covid Corporate Financing Facility and the Coronavirus Business Interruption Loan Scheme.
Larger firms who do not qualify for the existing Coronavirus Business Interruption Loan Scheme – for small and medium sized businesses – and the Bank of England Covid Corporate Financing Facility – for investment grade companies, can now apply for this.
The scheme will be available through a series of accredited lenders, listed on the British Business Bank website.
If a business has taken advantage of the COVID Corporate Finance Facility then it will be excluded from CLBILS, but participation in any of the other Government schemes will not affect eligibility for CLBILS.