CBI COMMENTS ON EXTENSION OF MAXIMUM LOAN SIZE FOR LARGER FIRMS

The Confederation of British Industry (CBI) has welcomed the announcement that loans available through the Coronavirus Large Business Interruption Loan Scheme are set to rise from £50 million to £200 million.

“Some mid-cap businesses urgently need access to larger loans to tide them over at this critical juncture for the economy.” Chief Economist, Rain Newton-Smith said,“Many of them are important regional employers, so the Treasury’s extension of maximum loans to £200m shows just how much they are listening to the concerns of business right now.”

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) provides financial support to mid-sized and larger UK businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak. The scheme is a part of a wider package of government support for UK businesses and employees which also includes the Coronavirus Future Fund and Bounce Back Loans.

“Bounce Back loans are the standout success so far among government packages supporting firms’ cashflow amid the crisis. Meanwhile, lenders are continuing to act at speed to get emergency funds to those businesses most in need”, Rain Newton-Smith concluded.

Across the UK, the CBI speaks on behalf of 190,000 businesses of all sizes and sectors. The CBI’s corporate members together employ nearly 7 million people, about one third of private sector-employees. With offices in the UK as well as representation in Brussels, Washington, Beijing and Delhi, the CBI communicates the British business voice around the world. Further information about the organisation can be found on their website.