Several changes to the CLBILS scheme have taken effect from 26 May. The government has extended the maximum loan size available through the Coronavirus Large Business Interruption Loan Scheme (CLBILS) from £50 million to £200 million.
However, companies borrowing more than £50 million through theCLBILS will be subject to restrictions on dividend payments, senior pay and share buy-backs during the period of the loan. This will include a ban on dividend payments and cash bonuses, except where they were previously agreed.
Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:
‘It is good to see the government continue to listen to business concerns and make improvements to existing schemes.
‘These important changes could make a real difference to larger firms in particular, and alongside the other lending support schemes will help ensure that more businesses of all sizes get access to the finance they need to help weather this unprecedented economic storm.’
Internet link: British Business Bank website