More large businesses will be able to apply for financial support from the government after a loophole left many facing ruin because of coronavirus paralysing the economy.

Announcing the move, Rishi Sunak said the government wanted to ensure that "no viable business slips through our safety net of support as we help protect jobs and the economy" during the coronavirus outbreak.

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Sky's city editor Mark Kleinman reported at the weekend that ministers were preparing to overhaul the emergency loan programme for bigger firms whose future has been put at risk of collapse by the COVID-19 pandemic.

As a result of the Treasury change, all companies with revenue of more than £45m will be able to apply for the Coronavirus Large Business Interruption Loan Scheme when it launches on Monday.

Previously, the scheme excluded companies with revenue of more than £500m because the government had hoped

they would be covered by a separate Bank of England programme.


But that scheme only assists companies that have an investment-grade credit rating, or the equivalent in terms of

financial health.

As a result, many viable large firms were excluded from the government's financial support.

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The expanded scheme is part of a £330bn loan guarantee programme announced by the chancellor last month, aimed at reducing the damage to the UK economy.

A survey this week from the Office for National Statistics showed 25% of businesses had temporarily closed or halted

trading since the lockdown.

Mr Sunak said: "I want to ensure that no viable business slips through our safety net of support as we help protect jobs and the economy. That is why we are expanding this generous scheme for larger firms.

"This is a national effort and we'll continue to work with the financial services sector to ensure that our £330bn of government support, through loans and guarantees, reaches as many businesses in need as possible."

Business Secretary Alok Sharma said expanding the scheme would "provide larger firms with the support they need during the pandemic, helping to provide job security to thousands of people and protect our economy".

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Keith Morgan, chief executive of British Business Bank, said: "The new Coronavirus Large Business Interruption Loan Scheme focuses on a relatively narrow area of the market, but one that is vitally important to the UK economy.

"More finance for viable mid-sized and larger firms will help them protect jobs and be in a better position to resume normal business when the current pandemic subsides."

With the news that the UK's COVID-19 lockdown will continue for at least another three weeks, businesses will be eager to make sure they can stay solvent until the economy gets back to a semblance of normality.