The government is extending the maximum loan size available through the Coronavirus Large Business Interruption Loan Scheme (CLBILS) from £50 million to £200 million.
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 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.
