The Government-backed loan means firms with a turnover of more than £45m will now be able to apply for up to £25m of finance, and businesses with a turnover of up to £250m will be able to apply for up to £50m worth of finance.
Sunak, who is launching the new scheme on Monday (20 March) said: “I want to ensure no viable business slips though our safety net of support as we help protect jobs and the economy. That is why we are expanding this generous scheme for larger firms.
“This is a national effort and we will continue to work with the financial services sector to ensure our £330bn of Government support through loans and guarantees reaches as many businesses in need as possible.”
Business secretary Alok Sharma said coronavirus had struck a heavy blow against businesses of all sizes across the UK.
He added: “Expanding this scheme will provide larger firms with the support they need during the pandemic, helping to provide job security to thousands of people and protect our economy.”
The Government will give lenders a guarantee of 80% on each loan in a bid to provide banks with further confidence in continuing to provide finance.
This follows the Government announcement that it was stopping banks from requesting personal guarantees for the Coronavirus Business Interruption Loan Scheme (CBILS) for businesses wishing to borrow under £250,000 earlier this month (3 April).
Sunak said he was taking further action to support firms impacted by the coronavirus crisis by bolstering interruption loans for small businesses and he mentioned a new scheme for larger companies at that point.
In a bid to maximise the support available, the Chancellor said he was extending the CBILS so all viable small businesses affected by Covid-19, and not just those unable to secure regular commercial financing, will now be eligible should they need finance to keep operating amid the pandemic.