Home Finance UK Government to offer £330 Billion of loans to keep businesses afloat

UK Government to offer £330 Billion of loans to keep businesses afloat

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.

James Caldwell
Editor for the Business Bible. James took on the role in March 2019 and shares his vast experience of International Business and Trade. James was previously Director of an international events company in Manchester and still remains active in the events industry.
- Advertisment -

Most Popular

MEET THE NORTHWEST ENTREPRENEURIAL MUM & DOMESTIC ABUSE SURVIVOR WHO HAS RAISED OVER £16,000 FOR CHARITY DURING LOCKDOWN BY FESTOONING WITH CELEBRITIES &...

With reports of domestic abuse and violence across genders rising to over 700% since the beginning of lockdown, an entrepreneurial mum of...

Manchester businessman brought in by UN to help solve Iraq’s skills gaps

The United Nations (UN) has turned to a Manchester-based expert in operational management to help the Iraqi government tackle the country’s skills...

Revolutionising Your Morning Brew: Teaching Transparency with Traidcraft Shop

As the original ‘rule breaking’ fair trade wholesaler, Traidcraft is proudly committing two of its single origin coffee blends to the Transparency...

Adverttu Creates NHS Driver Volunteer Support Programme

Unique way to directly help NHS staff, volunteers and other essential workers Adverttu has launched its new NHS Driver...

Recent Comments