// Chancellor Rishi Sunak to approve proposals for eligible businesses to apply for new loan scheme
// The Treasury plans to double the interest-free sums made available to companies
The government has reportedly announced an overhaul of emergency loan programs for large companies trying to trade during the coronavirus pandemic.
The Treasury plans to double the interest-free amounts available to businesses under the Coronavirus Large Business Interruption Loan Scheme (CLBILS) from £ 25million to £ 50million, Sky News reported.
Chancellor Rishi Sunak is due to approve new proposals that will allow companies with turnover of over £ 250million to become eligible to claim the increased amounts.
This will be a step up from previous terms introduced by the government in early April, which meant that companies with turnover between £ 45m and £ 500m could borrow up to £ 25m.
The Treasury will likely remove this £ 500million threshold to support large companies that cannot access Bank of England funding because they do not have an investment grade credit rating.
Meanwhile, small businesses have gained access to the Coronavirus Business Interruption Loan Program (CBILS), giving them the opportunity to borrow up to £ 5million interest-free for 12 months.
Only large companies with high credit scores can currently apply for the Bank of England’s Covid-19 Corporate Finance Facility (CCFF).