The Government has announced that it is to extend the maximum loan size available through the Coronavirus Large Business Interruption Loan Scheme (CBILS) from £50 million to £200 million.
The maximum loan size increase will help safeguard those large firms which do not qualify for the Bank of England’s Covid Corporate Financing Facility (CCFF) have adequate funding to meet cashflow needs during the outbreak.
The expanded loans, which have been introduced following discussions with lenders and business groups. In return, companies will have to agree not to pay dividends and to exercise control on senior pay.
The scheme had previously offered loans up to £50m. The larger loans will be available from 26 May.
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.”
“Today we’re increasing the maximum loan to £200 million to make sure companies get the help they need.”
“Businesses have benefitted from over £32 billion in loans and guarantees to support their cashflow during the crisis. This includes 268,000 Bounce Back Loans worth £8.3 billion, 36,000 loans worth over £6 billion through the Coronavirus Business Interruption Loan Scheme, and £359 million through the Coronavirus Large Business Interruption Loan Scheme, alongside £18.7 billion through the CCFF.”