"Ensuring businesses of all sizes access the financial support they need during these tough times is a common goal shared by Government, banks and regulators."
The maximum loan size available under the Government's Coronavirus Large Business Interruption Loan Scheme (CLBILS) has been extended from £50 million to £200 million.
Loans under the expanded scheme will be made available to large businesses affected by coronavirus from next week.
As part of the changes, 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.
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."
Stephen Jones, CEO of UK Finance, commented: “Ensuring businesses of all sizes access the financial support they need during these tough times is a common goal shared by Government, banks and regulators. The banking and finance industry welcomes HM Treasury’s reforms to CLBILS, extending the maximum loan size available from £50 million to £200 million to help support larger business affected by coronavirus alongside the Bank of England’s Coronavirus Corporate Financing Fund (CCFF).
“Over the last seven weeks, the industry has worked tirelessly to get money to those viable businesses that need help with firms and sole traders of all shapes and sizes accessing billions of pounds in loans. These government-backed schemes are just one aspect of the range of measures available to businesses from the banking and finance sector. The extensive support includes working capital extensions, overdraft extensions, capital repayment holidays and asset-based finance, allowing businesses to access the right support that suits their needs. We stand ready to support many more customers in the weeks ahead.”