Chancellor Rishi Sunak has launched a new loan program to support businesses in need.
The payback loan replaces a series of earlier programs including the Bounce Back Loans which have lent more than £ 46bn in the past 12 months.
With non-essential retail and outdoor hospitality reopening next week, ministers have made the new program available to businesses to help protect jobs.
A wide range of businesses can access loans ranging from £ 25,000 to a maximum of £ 10 million. Bill and asset financing is available from £ 1000.
Sunak commented, “We have taken no steps to protect jobs and livelihoods throughout the pandemic and as the situation evolved we have ensured that our support continues to meet the needs of businesses. .
“As we safely reopen parts of our economy, our new stimulus loan program will ensure businesses continue to have access to the financing they need as we emerge from this crisis.”
This is in addition to the extension of the holiday until September 30 and the new restart grant scheme launched last week, providing funding of up to £ 18,000 to eligible businesses.
The program, which was announced in the budget and runs until December 31, 2021, will be administered by the British Business Bank, with loans available through a diverse network of accredited commercial lenders.
Some 26 lenders have already been accredited for the first day of the program, more to come soon, and the government will provide an 80% guarantee for all loans.
Interest rates have been capped at 14.99% and are expected to be much lower than that in the vast majority of cases, and ministers urge lenders to ensure they keep rates low to help protect jobs.
The Stimulus Loan Program can be used as an additional loan in addition to the support received from emergency programs – such as the Rebound Loan Program and the Coronavirus Business Interruption Loan Program – put in place. ‘last year.
So far, the government’s emergency lending programs have supported more than £ 75 billion in financing for 1.6 million UK businesses and this new program will build on that success.
Business Secretary Kwasi Kwarteng said, “We are doing all we can to support businesses as we carefully reopen our economy and reclaim our way of life. The launch of our new Stimulus Loan program will provide businesses with a solid foundation on which to plan. , protect jobs and prepare for a safe reopening as we rebuild better after the pandemic. “