Coronavirus: Companies face EU state aid battle to access loan scheme

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Some of Britain's biggest employers face being blocked under European state aid laws from receiving government-guaranteed loans intended to provide a corporate lifeline through the coronavirus pandemic

One described the undertaking-in-difficulty definition as"a technicality" that could harm"successful UK businesses with strong prospects of being able to repay any government-backed loans".

"Any changes made to solve this issue do not need to affect the underlying EU state aid framework, rather they could be as time limited and temporary as the Temporary Framework itself," it said. Sources said overturning the undertaking-in-difficulty rule was now the biggest priority for the private equity industry.

The private equity industry thought it had overcome the biggest obstacle to its companies' access to CLBILS when the Treasury agreed to allow businesses majority-owned by buyout firms to utilise it on an individual basis.An earlier debate had left so-called financial sponsors fearing that the £50m loan cap would apply in aggregate across their portfolio of investee companies.

Many of their interests are in sectors such as retail and hospitality, which have been particularly badly affected by the COVID-19 pandemic.

 

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Having done Brexit do not expect them to bail out British companies. Rightfully it is the Tory govt responsibility

Just ignore it

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