Mid-Sized Business Covid-19 Financial Support Measures Announced

The Chancellor Rishi Sunak MP has today announced new funding support for mid-sized businesses during the Coronavirus crisis.

The new Coronavirus Large Business Interruption Loan Scheme (CLBILS) will ensure that more firms are able to benefit from government-backed support during this difficult time. It will provide a government guarantee of 80% to enable banks to make loans of up to £25 million to firms with an annual turnover of between £45 million and £500 million. This will give banks the confidence to lend to more businesses which are impacted by coronavirus but which they would not lend to without CLBILS. Loans backed by a guarantee under CLBILS will be offered at commercial rates of interest and further details of the scheme will be announced later this month.

Welcoming the announcement, the IFB’s Fiona Graham said:

“We have been asking Government to urgently address the funding gap for mid-sized companies, so this is a welcome step forward from the Chancellor.  The types of businesses covered by the new scheme are absolutely vital to our economy, and need help to make it through these difficult times.  We look forward to seeing the details on this, and in working to make sure that money makes it way to businesses fast.  The Government also can’t forget about those companies which still aren’t covered by the three schemes announced, to make sure all businesses are getting the support they need.”

The Chancellor also announced changes to the Coronavirus Business Interruption Loan Scheme (CBILs) aimed at increasing the number of smaller businesses that can benefit.  The Chancellor is extending the CBILS so that all viable small businesses affected by COVID-19, and not just those unable to secure regular commercial financing, will now be eligible should they need finance to keep operating during this difficult time.

The government is also stopping lenders from requesting personal guarantees for loans under £250,000 and making operational changes to speed up lending approvals. The government will continue to cover the first twelve months of interest and fees.

The Government said today that more than £90 million of loans to nearly 1,000 small and medium sized firms have been approved under the government’s Coronavirus Business Interruption Loan Scheme (CBILS) since its launch last week. And a government-backed scheme to provide financing to larger companies, being operated by the Bank of England, has also provided almost £1.9 billion of support to firms and a further £1.6 billion has been committed.

Find out more about CBILs on the British Business Bank website.

Find out more about the Covid Corporate Financing Facility on the Bank of England website.

Visit our Covid-19 hub for information on the other support packages announced.