Treasury to unveil loan scheme for mid-size companies

Linda J. Dodson

The Treasury is expected to announce details of a new emergency government-backed lending scheme to bail out large businesses as soon as this evening.

The scheme, which could be launched by Monday, was mooted by Chancellor Rishi Sunak earlier this month. It is designed to help firms in the “squeezed middle” that are caught between the Government’s existing bailout loan programmes. 

About 9,000 firms will be eligible for the new programme, a source said.

The scheme is aimed at companies that are too large to qualify for the Government’s guaranteed loan scheme for small businesses and also fall short of the requirements for the Bank of England’s commercial paper lending programme. 

Loans of up to £50m are expected to be made available to firms with annual sales of more than £250m, two sources said. 

Firms with turnover of between £45m and £250m will be eligible to receive up to £25m in loans guaranteed by the Government. 

It was previously announced that £25m would be the maximum loan size for all eligible firms but business groups have been lobbying for larger businesses to be given access to more cash as they face a liquidity crisis. 

Officials were working to finalise details of the programme, whose terms have remained under wraps while Government assesses what support is needed. 

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