With effect from 26 May 2020 in the UK, large businesses will now be able to borrow up to a maximum of £200 million under the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The original scheme was set up to support businesses or groups with turnover in excess of £45 million. However, the maximum loan size was £50 million. According to the latest figures from UK Finance, so far 86 mid-sized and larger UK businesses have received financial support through the CLBIL scheme, with total lending of £590 million.
HM Treasury have now confirmed that this will increase significantly to £200 million but is still subject to a maximum limit of the lower of 25% of turnover or £200 million.
The government also announced that 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, including a ban on dividend payments and cash bonuses, except where previously agreed.
