Banks wary supporting PE under UK scheme

UK Treasury adobe stock 575x375
By Silas Brown
17 Aug 2020

A UK government spokesperson has told GlobalCapital that the UK is exploring ways to support private equity-backed businesses that fall foul of EU rules around state aid. Accredited lenders under the UK government’s emergency corporate loans schemes are rejecting applications by many private equity-backed companies, fearing they do not fit the eligibility criteria.

The UK government spokesperson told GlobalCapital on Monday: “While recent changes to state aid rules mean more small businesses can access the Coronavirus Business Interruption Loan Scheme, we recognise that some viable larger businesses may still be classed as undertakings in difficulty. We are continuing to explore whether ...

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