// Chancellor Rishi Sunak due to sign off proposals enabling eligible businesses apply for the new loan scheme
// The Treasury plans to double the interest-free sums available to companies
The government has reportedly announced an overhaul of the emergency loan packages for larger businesses that are attempting to trade through the coronavirus pandemic.
The Treasury plans to double the interest-free sums available to companies under the Coronavirus Large Business Interruption Loan Scheme (CLBILS) from £25 million to £50 million, Sky News reported.
Chancellor Rishi Sunak is due to sign off new proposals which will see businesses with a turnover of more than £250 million become eligible to apply for the increased sums.
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This will be a step forward from the previous terms introduced by the government at the start of April which meant businesses with sales of between £45 million and £500 million could borrow up to £25 million.
The Treasury is likely to remove that £500 million turnover threshold to support the larger businesses that cannot access Bank of England funding because they do not have an investment grade credit rating.
Meanwhile, smaller businesses have been given access to the coronavirus business interruption loan scheme (CBILS), offering them the ability to borrow up to £5 million interest-free for 12 months.
Only larger companies with high credit ratings are currently able to apply for the Bank of England’s Covid-19 corporate financing facility (CCFF).