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Chancellor commits £330bn in loan guarantees to support businesses

News18 Mar 2020Sarah Williams

Chancellor Rishi Sunak has announced £330bn of guarantees to support businesses struggling to make payments amid the ongoing coronavirus outbreak.

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Rishi Sunak: £330bn package is an “initial” amount (picture: Chris McAndrew)
Rishi Sunak: £330bn package is an “initial” amount (picture: Chris McAndrew)
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Chancellor Rishi Sunak announces £330bn of loan guarantees to support businesses struggling to make payments amid the ongoing coronavirus outbreak #socialhousingfinance
Bank of England to set out details of new £330bn loan guarantee scheme for businesses, as well as loans to be made available through the British Business Bank #socialhousingfinance
“This national effort will be underpinned by government interventions in the economy on a scale unimaginable only a few weeks ago.” Rishi Sunak on new financial package to support businesses amid #coronovirus outbreak #socialhousingfinance

Mr Sunak said that the package is an “initial” amount but that if demand exceeds the £330bn, he would “go further and provide as much capacity as required”.

 

Speaking yesterday at the second of the government’s new daily briefings on the outbreak, the chancellor said that the national effort to combat the virus would be “underpinned by government interventions in the economy on a scale unimaginable only a few weeks ago”.

 

Boris Johnson, who on Monday announced new guidance to restrict travel and social contact, said that the government must “act like any wartime government and do whatever it takes” to support the economy.

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Mr Sunak said of the guarantees package: “[Any] business who needs access to cash to pay their rent, their salaries, suppliers, or purchase stock will be able to access a government-backed loan or credit on attractive terms.”

 

At the same time, he increased the size of loans available through a new ‘business interruption loan scheme’ announced at last week’s Budget for small and medium-sized businesses, from £1.2m to £5m.

 

Details of the loan schemes will be set out by the Bank of England, which will provide support for liquidity among larger firms, while other loans will be accessed via the British Business Bank. Loans through the British Business Bank will be interest-free for six months.

Social Housing has asked the Treasury and the Ministry of Housing, Communities and Local Government whether the loan schemes would be available to housing associations with regard to financial requirements occurring as a result of the outbreak.

 

In his address yesterday Mr Sunak said that he would set out “the next stage” of the government’s response in the coming days.

 

He said: “I want to reassure every British citizen, this government will give you all the tools you need to get through this.”

FinanceGovt agency/department/organisationHousing Association/RPRegulation and Governance
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