Among a package of Budget measures to counteract the potential impact of coronavirus on business activity, Chancellor Rishi Sunak announced the launch a new, temporary coronavirus business interruption loan scheme, reports Pat Sweet
The scheme, delivered by the British Business Bank, will support businesses to access bank lending and overdrafts.
The government will provide lenders with a guarantee of 80% on each loan (subject to a per lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs.
The government will not charge businesses or banks for this guarantee, and the scheme will support loans of up to £1.2m in value. The Treasury said this new guarantee will initially support up to £1bnn of lending on top of current support offered through the British Business Bank.