Chancellor Rishi Sunak announced on Tuesday that the UK government will guarantee £330 billion of bank loans to support businesses struggling with the Coronavirus outbreak.
Speaking alongside Boris Johnson, he said the government would guarantee the equivalent of 15% of the UK’s GDP to support both large and small businesses struggling to pay rent, salaries and suppliers. The Chancellor also promised “unlimited support” to prevent bars, restaurants and shops from closing down.
“Today I am making available an initial £330 billion of guarantees, equivalent to 15% of our GDP. That means any business who needs access to cash to pay their rent, their salaries, suppliers, or purchase stock, will be able to access a government-backed loan or credit on attractive terms. If demand is greater than the £330 billion I am making available today, I will go further and provide as much capacity as required.Chancellor Rishi Sunak
Sunak advised there would two main schemes that would support businesses. Larger firms will access a lending facility through the Bank of England, which would guarantee low-cost, easily accessible loans.
For small- and medium-sized businesses, the UK Government will provide a new loan scheme so businesses can borrow up to £5 million with no interest due for the first 6 months.
The £330 Billion schemes are due to be launched next week.