UK govt expands Covid-19 loan scheme to £200m

The UK Treasury on Tuesday extended the size of loans available to larger businesses affected by the coronavirus pandemic.

Companies will now be able to receive up to £200m from the Coronavirus Large Business Interruption Loan Scheme (CLBILS), an increased from the previous maximum of £50m.

Loans under the expanded scheme will be made available to firms from Tuesday May 26, the Treasury said in a statement.

The CLBILS scheme was introduced last month by Finance Minister Rishi Sunak to support companies with sales of £45m - £250m.

The government said businesses had benefited from more than £32bn in loans and guarantees to support their cashflow during the crisis, including 36,000 through CLBILS.

Companies borrowing more than £50m through 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 they were previously agreed, it added.