CLBILS opens to sponsor-owned firms but will they use it?

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By Owen Sanderson
29 Sep 2020

Technical changes to the UK government’s large business support scheme open the way for private equity-owned firms to draw on the facility, but limits on dividends and new indebtedness may still discourage sponsors from using the scheme.

The change, announced last Friday, allows businesses that were "undertakings in difficulty" at the end of last year, but are not now, to draw on the guarantee scheme, which gives a UK government guarantee covering 80% of a loan.

As many PE firms were heavy users of shareholder ...

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