The scheme targets businesses with loans of available of up to £50m, backed by the government up to 80 per cent.
Firms will be able to borrow money from the coronavirus Large Business Interruption Loan Scheme (CLBILS) with loans up to £50m from Monday.
The cash will be delivered by lenders accredited by the British Business Bank and applies to larger UK businesses with turnover above £45m.
CLBILS can help provide facilities of up to £25m for businesses with turnover from £45m up to £250m, and facilities of up to £50m for those businesses with a turnover of more than £250m who are suffering disruption to their cash flow due to lost or deferred revenues during the COVID-19 outbreak.
The new CLBILS scheme will support term loans, revolving credit facilities (including overdrafts), invoice finance and asset finance facilities. Lenders see a partial guarantee of 80 per cent of the outstanding facility balance from the Government.
Keith Morgan, Chief Executive, 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.”