The Chancellor has previously announced several temporary and targeted measures to support businesses through the period of disruption caused by COVID-19.
The Coronavirus Business Interruption Loan Scheme (CBILS) went live on Monday, but this scheme only supports businesses with a turnover of £45m or less.
So, where do larger businesses turn to?
The Covid Corporate Financing Facility (CCFF) was announced for larger businesses, but a definition of size by reference to any numbers has not been given. Instead businesses are effectively assessed by their contribution to the UK economy in several ways. According to the Bank of England this will mean “companies that generate significant revenues in the UK”, amongst other factors.
Our bank contacts advise us that the investment grade credit ratings that will be required to access this scheme effectively excludes all businesses except substantial PLCs.
This will therefore exclude all of our clients who do not already qualify for CBILS.
We are advised that the banks have been highlighting to Government that a large number of businesses fall between these two schemes and are therefore not currently being offered any form of financing assistance.
There has been an indication that there may be more news on this in the next few days. In the meantime we suggest you speak to your bank about the support they can give you around your current facilities.
We will continue to closely watch the situation and bring you up to speed with our updates.
As ever, your usual points of contact at Rayner Essex are here to discuss the issues with you and assist with exploring the way forward.
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