Businesses will be able to benefit from larger loans under the Coronavirus Large Business Interruption Loan Scheme (CLBILS), the government announced.
The maximum loan size available under the scheme will be increased from £50 million to
£200 million to help ensure those large firms which do not qualify for the Bank of England’s COVID Corporate Financing Facility (CCFF) have enough finance to meet cashflow needs during the outbreak.
John Glen, the Economic Secretary to the Treasury, 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.”
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, including a ban on dividend payments and cash bonuses, except where they were previously agreed.
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