Restrictions were also placed on senior corporate pay and share buybacks.

[ Cash Bonuses, Dividends Banned at U.K. Firms Getting Sunak Loans ]
The U.K. banned companies taking the biggest state-backed coronavirus loans from paying out dividends and cash bonuses after opposition parties insisted the program should be used to help firms ‘

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Businesses taking out loans of 50 million pounds ($61 million) or more under the Coronavirus Large Business Interruption Loan Scheme will be subject to the conditions, the Treasury said Tuesday in a statement. Cash bonuses dividends banned at u k News Cash Bonuses, Dividends Banned at U.K. Firms Getting Sunak LoansBloomberg on MSN.com20 hours agoThe U.K. banned companies taking the biggest state-backed coronavirus loans from paying out dividends and cash bonuses after ... Restrictions were also placed on senior corporate pay and share buybacks. UK bailout scheme companies barred from paying bonuses and dividendsThe Financial Times1 day agoCompanies using the government’s Covid-19 bailout scheme aimed at the biggest businesses are to be banned from paying cash bonuses ... At the same time, the maximum loan size was increased to 200 million pounds.

The conditions — which apply for the period of the loan — were also placed on loans of a year or more taken out from Tuesday under the Bank of England’s Coronavirus Corporate Financing Fund. The bans don’t apply if dividends or cash payments have previously been agreed. Cash Bonuses, Dividends Banned at U.K. Firms Getting Sunak ... U.K. banned companies taking the biggest state-backed coronavirus loans from paying out dividends and cash bonuses after opposition parties insisted the program should be used to help firms... Business leaders broadly accepted the restrictions.

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Quite a lot has been going on:

Bailed-out businesses face dividend ban as loans size is extended

Large businesses will be able to borrow up to ‘200million as the Government has quadrupled the size of loans available, but those taking them up will have to stop paying dividends and limit executive pay and bonuses.’

The Treasury said the taxpayer-backed loans made available to large companies under the Coronavirus Large Business Interruption Loan Scheme (CLBILS) will increase from the previous maximum of ’50million.

From next Tuesday, companies will be able to borrow up to 25 per cent of their turnover, up to a maximum of ‘200million, under the scheme.’However, firms which take up the loans will be prevented from doling out cash to investors.

Publisher: This is Money
Date: 2020-05-19T12:29:05+0100
Author: Camilla Canocchi
Reference: Visit Source (Read Article)

Coronavirus: Companies face dividend ban under revised state loan scheme

Companies which receive state-backed loans of up to ‘200m face being banned from paying dividends or buying back shares under plans being considered this weekend by the government.

Sky News has learnt that ministers are finalising changes to the Coronavirus Large Business Interruption Loan Scheme (CLBILS) that would include prohibiting the distribution of capital to investors in companies which take on the loans.

The government is also planning to encourage corporate users of CLBILS to demonstrate restraint when they make decisions about executive pay and bonuses, bankers said on Sunday.


Publisher: Sky News
Twitter: @skynews
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Changes to state-backed loan scheme mooted – Your Money

According to a report by Sky News, the Government is planning to change the terms of the Coronavirus’Large Business Interruption Loan Scheme (CLBILS).

The move is intended to stop shareholders and managers excessively benefiting from the cash which is being lent to help companies survive the coronavirus pandemic.

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) supports large businesses, with an annual turnover of more than ’45 million.

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But Sky News claims that ministers are concerned that firms will use the money to bump up dividends paid to shareholders and executive pay.

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Publisher: Your Money
Date: 2020-05-18T10:08:44+00:00
Reference: Visit Source (Read Article)

Coronavirus UK: Unemployment hits 1.35m despite furlough scheme

The number of people claiming benefits has soared by a record 856,500 to 2.1million in the first full month of the coronavirus lockdown – despite the furlough scheme keeping millions in work.’

The Office for National Statistics (ONS) said that claims under Universal Credit sky-rocketed by 69 per cent in April, as the country begins easing out of the draconian lockdown measures imposed in late-March.

Today’s newly released figures also revealed that unemployment’jumped by 50,000 to 1.35 million in the three months to March.

The dire numbers come despite Chancellor Rishi Sunak’s job retention scheme that currently has 7.5 million people on furlough in efforts to prop up the economy during the pandemic.

Publisher: Mail Online
Date: 2020-05-19T07:25:46+0100
Author: James Robinson
Reference: Visit Source (Read Article)

Coronavirus LIVE Updates: The latest news from across Gloucestershire on Tuesday, May 19

The ongoing coronavirus situation is changing by the hour with announcements being made about businesses and services that are being forced to adapt and change.

Punchline is committed to trying to keep you up to date with all the news that matters to you and your business.

If you or your business has any news, views or advice to share with the Gloucestershire business community, get in touch with Punchline team at [email protected].

And this is why the business has been picked out as Punchline’s latest Business and Community Champion – an initiative backed by GFirst LEP, the Growth Hub, Gloucestershire County Council and the Office of the Police and Crime Commissioner.


Publisher: www.punchline-gloucester.com
Twitter: @punchlineglos
Reference: Visit Source (Read Article)

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