The Premier League and English Football League have agreed a £250m relief package to help finance challenges faced by EFL clubs due to the coronavirus pandemic.

The EFL will be receiving a £200m loan for Championship clubs and a £50m grant has been agreed for League One and Two clubs.

Funds will be distributed as followed according to BBC:

• The Premier League will pay up to £15m to help the EFL secure a £200m loan which it will then lend to Championship clubs interest free.

• Loans are capped at £8.33m per club and must be repaid by June 2024.

• The £50m rescue package for Leagues One and Two is split into two parts – £30m will be paid to the 48 clubs as a grant based on missed gate receipts from the 2019-20 and 2020-21 seasons.

• League One clubs will receive a minimum payment of £375,000
• League Two clubs will receive a minimum payment of £250,000
• The remaining £15m will be distributed using a lost gate revenue share calculation

• A further £20m monitored grant will be provided and clubs can apply based on need. A joint Premier League and EFL panel will determine club eligibility.

• Clubs receiving a monitored grant will be subject to restrictions with respect to transfer spend and player wages.

EFL chairman Rick Parry stated:

“It was a welcome, tangible commitment to the professional game at a time when it has needed it most. Our over-arching aim throughout this process has been to ensure that all EFL clubs survive the financial impact of the pandemic.”

Premier League chief executive Richard Masters continued:

“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. 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.”