UK broadens scope of emergency business loans scheme

The British government has removed the cap on one of its coronavirus loan guarantee scheme so that all companies with annual revenue of more than 45 million pounds ($56 million) can access support if they were forced to shut operations or were otherwise hurt by the lockdown.

With Britain's lockdown extended for another three weeks at least, many businesses are struggling to remain solvent and many mid- to large-sized companies are fretting about not being eligible for the Coronavirus Large Business Interruption Loan Scheme, which launches Monday.

Treasury chief Rishi Sunak, said he wanted to ensure that no business slips through our safety net of support as we help protect jobs and the economy. Under the scheme, which provides 330 billion pounds of support in total, the government has pledged to give banks an 80% guarantee on the loans.

Companies with sales of between 45 million pounds and 250 million pounds can apply for 25 million pounds of financing while those with revenue of more than 250 million pounds can draw on 50 million pounds.

Adam Marshall, director general of the British Chambers of Commerce, said he is pleased to see Sunak respond to real-world business concerns and expanding assistance to good companies facing severe cash constraints as a result of the coronavirus crisis.

There are separate schemes for smaller firms and Britain's largest companies, including financial support for those that opt to keep workers on payroll rather than firing them.