Chancellor Rishi Sunak today unveiled a new loan scheme to support businesses hit by the pandemic, replacing previous emergency government funding.
The Recovery Loans Scheme will offer loans from £25,000 to £10m up to the end of the year, with the government providing lenders with a 80 per cent guarantee.
The programme replaces the Bounce Back Loan and Coronavirus Business Interruption Loan Scheme, which have paid out more than £70bn to British businesses.
The new loan scheme comes in addition to a £5bn restart scheme offering grants to help retail, hospitality and personal care businesses reopen from April.
Retailers, which are due to reopen from April, will be eligible for grants of up to £6,000 per premises.
Meanwhile pubs, restaurants and salons, which will be closed until June, will be able to claim grants of up to £18,000.
“Even with the new Restart Grants, some businesses will also need loans to see them through,” Sunak said.
“As the Bounce Back Loans and Business Interruption Loans schemes come to an end, we’re introducing a new Recovery Loans Scheme to take their place.”