UK launches loan scheme to help businesses turn around

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FILE PHOTO: A woman wears a face mask as she walks past a closed retail unit amid the coronavirus disease outbreak in Manchester, Britain March 8, 2021. REUTERS / Phil Noble

LONDON (Reuters) – Britain will launch a government-backed loan program on Tuesday to help businesses access finance as the economy reopens after a strict lockdown, offering loans up to £ 10million (£ 14million). of dollars).

Finance Minister Rishi Sunak said the loans, ranging from £ 25,001 to £ 10million, would replace existing COVID-19 programs and add to a subsidy program that was launched to help businesses restart their businesses. Commercial activities.

The program will be administered by the British Business Bank, with loans available from commercial lenders and the government providing an 80% guarantee. It runs until the end of this year and interest rates will be capped at 14.99%.

The government is urging lenders to keep rates low to protect jobs. The government has so far said its emergency loans have supported more than £ 75 billion in funding.

“As we safely reopen parts of our economy, our new stimulus loan program will ensure that businesses continue to have access to the finance they need as we emerge from this crisis,” Sunak said.

($ 1 = 0.7218 pounds)

Reporting by Kate Holton; edited by Barbara Lewis

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