Chancellor announces extra loan support for businesses

The Chancellor is today taking further action to support businesses large and small, by helping banks approve loans as quickly as possible.

  • The Government has made available millions of pounds of finance to help businesses get through the Coronavirus crisis, and £90 million of business interruption loans have already been approved.
  • The Chancellor is now expanding the Government’s generous programme of business loans guarantees so that many more small businesses affected by Coronavirus will be eligible if they need finance to keep operating during this difficult time. Lenders will be also banned from requesting personal guarantees on loans under £250,000.
  • At the same time, the Chancellor is launching a scheme for large businesses, providing a government guarantee of 80 per cent to enable banks to make loans of up to £25 million, at commercial rates of interest, to firms with an annual turnover between £45 million and £500 million.
  • This will give banks the confidence to lend to more businesses which are impacted by coronavirus, and help ensure that the £330 billion of government support reaches as many businesses in need as possible.