The Premier League and English Football League (EFL) have agreed a £250million rescue package to help ease the financial challenge faced by EFL clubs as a result of the coronavirus pandemic.
The EFL will be assisted in getting a £200m loan for Championship clubs.
A £50m grant has been agreed for League One and Two clubs.
EFL Chairman Rick Parry said it was a “welcome, tangible commitment to the professional game at a time when it has needed it most”.
The Premier League will pay up to £15million to help the EFL to secure a £200million loan which it will then lend to Championship clubs interest free.
Loans are capped at £8.33million per club and must be repaid by June 2024.
The £50million rescue package for Leagues One and Two is split into two parts – £30million 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 £15million will be distributed using a lost gate revenue share calculation
A further £20million 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.
“Our over-arching aim throughout this process has been to ensure that all EFL clubs survive the financial impact of the pandemic,” said Parry.
“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.”
Premier League chief executive Richard Masters said: “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 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.”
The Premier League previously said a financial package for League One and Two clubs was intended to make sure they “will not go out of business as a result of the financial impact of Covid-19 and be able to complete the 2020-21 season”.
Since March, football has been played behind closed doors until restrictions were lifted in some areas of England this week, meaning clubs have missed out on vital matchday revenue.
In October, EFL clubs rejected the Premier League’s proposed £50million rescue package for League One and Two clubs, saying it “falls some way short” of the required amount.
Top-flight clubs made the offer after deciding not to pursue Project Big Picture.
But in November, clubs “agreed in principle” for those in League One and Two to receive the package from the Premier League.
The agreement came two days after a parliamentary committee heard that 10 EFL clubs were struggling to pay wages.
The EFL board approved the deal on Thursday before Premier League shareholders then gave their final approval to the agreement.
“I warmly welcome this deal between the Premier League and the EFL which provides up to £250million support to help clubs through Covid,” said Culture Secretary Oliver Dowden.
“I’m glad that football has come together to agree this substantial package. Fans are starting to return and we look forward to building on this as soon as it’s safe.
“With a £250million support package for men’s elite football and £300million government fundingfor women’s football, the National League and other major spectator sports we have fuel in the tank to get clubs and sports through this.”
Julian Knight MP, chair of the Digital, Culture, Media and Sport Committee, said he welcomed the rescue package but criticised the delay in agreeing the deal, adding: “This fiasco is evidence of a lack of accountability within football’s governance structure.”