Chancellor expands loan scheme for large firms

All large businesses with turnover of more than £45 million can apply for the coronavirus large business interruption loan scheme next week.

Firms with a turnover of more than £45m are eligible for up to £25m, while businesses with a turnover exceeding £250m qualify for £50m.

The Treasury will start processing loan applications from large firms affected by COVID-19 when the scheme goes live on Monday 27 April 2020.

When the large business loan scheme was first announced in early April, large businesses with turnover of more than £500m were excluded. This is no longer the case.

The scheme aims to help firms that don't qualify for either the existing business interruption loan scheme or the COVID-19 corporate financing facility.

The Government is to provide accredited lenders with a guarantee of 80% on each loan to speed up the process.

Chancellor Rishi Sunak said:

"I want to ensure that no viable business slips through our safety net of support as we help protect jobs and the economy.

"That is why we are expanding this generous scheme for larger firms.

"We'll continue to work with the financial services sector to ensure our loans and guarantees reach as many businesses in need as possible."