Larger businesses to benefit from loans of up to £200 million
The Government has extended the maximum loan size available through the Coronavirus Large Business Interruption Loan Scheme from £50 million to £200 million.
The scheme facilitates access to finance for mid-sized and larger businesses with a group turnover of more than £45m affected by the coronavirus outbreak.
The changes also mean companies receiving help through CLBILS will be asked to agree to not pay dividends and to exercise restraint on senior pay.
- Borrowers under CLBILS will be able to borrow up to 25% of turnover, up to a maximum of £200 million
- Lenders who wish to offer larger loans will need to undergo further accreditation checks
The restrictions in place will include:
- Dividends: Borrowers cannot make any dividend payments other than those that have already been declared
- Share buyback: Borrowers agree not to make any share buybacks
- Executive pay: Borrowers cannot pay any cash bonuses, or award any pay rises to senior management (including the board) except where they were a) declared before the CLBILS loan was taken out, b) is in keeping with similar payments made in the preceding 12 months, and c) does not have a material negative impact on the borrower’s ability to repay the loan.
To find out more, please contact Lee Humble at email@example.com.