Loan size
increased to 200 million pounds under large business interruption scheme
The government
is extending the maximum loan size available through the Coronavirus Large
Business Interruption Loan Scheme (CLBILS) from 50 million pounds to 200 million pounds.
The loans will
be made available to large businesses affected by the coronavirus (COVID-19)
from 26 May.
However, companies
borrowing more than 50 million pounds through the CLBILS will be subject to restrictions on dividend payments,
senior pay and share buy-backs during the period of the loan. This will include
a ban on dividend payments and cash bonuses, except where they were previously
agreed.
Similar
restrictions will also apply to firms accessing the Bank of England's Coronavirus Corporate Financing Fund.
Commenting on
the extension, Suren Thiru, Head of Economics at the British Chambers of
Commerce (BCC), said: 'It is good to see the government continue to listen to
business concerns and make improvements to existing schemes.
'These
important changes could make a real difference to larger firms in particular,
and alongside the other lending support schemes will help ensure that more
businesses of all sizes get access to the finance they need to help weather
this unprecedented economic storm.'
Further
guidance is available here.