Preston North End and other Championship clubs can access an interest-free £200m loan facility provided by the Premier League.
A further £50m in the form of a grant and monitored grant payments will be available to clubs in Leagues One and Two, such as Morecambe.
Premier League clubs gave their final approval to the agreement at a shareholder meeting earlier today, following the EFL board’s prior approval of the deal on behalf of its membership.
EFL chairman, Rick Parry, said: “Our overarching aim throughout this process has been to ensure that all EFL clubs survive the financial impact of the pandemic.
“I am pleased that we have now reached a resolution on behalf of our clubs and as we have maintained throughout this will provide much needed support and clarity following months of uncertainty.
“I would like to thank Richard Masters (Premier League chief executive) and Gary Hoffman (Premier League chairman) for their efforts on behalf of the Premier League, and of course their shareholders, for making this welcome, tangible commitment to the professional game at a time when it has needed it most.”
Masters added: “The Premier League is a huge supporter of the football pyramid and is well aware of the important role clubs play in their communities. Our commitment is that no EFL club need go out of business due to Covid-19.
“All football clubs continue to suffer significant financial losses as a result of the pandemic, but Premier League shareholders today unanimously agreed to provide additional funding and support for EFL clubs in real financial distress.
“We are very pleased to have reached this agreement and we stand together with the EFL in our commitment to protect all clubs in these unprecedented times.”
In terms of the cover for Championship clubs, the loan facility will help them meet PAYE liabilities until June 30, 2021.
Loans will be capped at £8.33m per club with the money due to be repayed by June 2024, using Premier League solidarity receipts or other central Premier League or EFL distributions.
The fund isn’t available to any club in breach or suspected breach of EFL regulations and clubs will need to submit evidence in their applications as to their eligibility.
Any club in receipt of a loan payment as detailed will be required to continue to maintain compliance with the EFL’s financial regulations.
The money for clubs in the bottom two tiers will take the form of an immediate £30m grant from the Premier League with a further £20m available on application as ‘monitored grants’.
The initial £30m is based on lost gate receipts in respect of the 2019/20 and 2020/21 seasons.
League One clubs will receive a minimum of £375,000 each with £250,000 for teams in League Two, while the remaining £15m will be distributed using a ‘lost gate revenue share’ calculation to be approved by the EFL and Premier League.
The ‘monitored grant’ can be applied for based on a club’s need with an EFL and Premier League panel determining eligibility.
Clubs who gain that financial assistance will be subject to restrictions in terms of transfer spend and player wages but, should they keep to those limits, they won’t have to repay any of the funding required.
However, clubs in receipt of grants or monitored grant payments will be required to keep within the EFL’s financial regulations.
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