The maximum amount of loan available from the Coronavirus Business Interruption Loan scheme (CBILS) has been increased from £50m to £200m, the government announced today. Those companies receiving help through CBILS and the Bank of England’s Coronavirus Corporate Financing Fund will be asked to not pay dividends and to exercise restraint on senior pay.
This move will look to benefit large firms that did not previously qualify previously for CBILS and will provide extra support for businesses. The expanded loans will be available from 26 May.
Sharon Smith, Chief Executive of HW Chamber of Commerce, said: “The government has listened to business concerns and adjusted their existing package of support to help as many businesses as possible. During these times it is important that as many businesses as possible can access the financial support they so desperately need to help with cash flow problems and todays announcement will contribute towards this.”
Suren Thiru, British Chambers of Commerce Head of Economics, 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.”
The government said borrowers under CLBILS will be able to borrow up to 25% of turnover, up to a maximum of £200m, and lenders who wish to offer larger loans will need to undergo further accreditation checks.
For further information on the guidance and support available please visit our Coronavirus Business Support Hub.