Treasury announces extra support for businesses
The Chancellor has announced unlimited loans and guarantees to support firms and help them manage cashflow during the coronavirus emergency. The Chancellor announced he will make available an initial £330 billion of guarantees.
The Government says, to ensure that businesses have access to the funds they need, it will provide:
- support for liquidity amongst large firms, with a new Bank of England scheme to help businesses bridge coronavirus disruption to their cash flows through loans;
- an increase to the amount businesses can borrow through the Coronavirus Business Interruption Loan Scheme to £5 million (up from £1.2 million announced in the Budget) and ensuring businesses can access the first 6 months of that finance interest free (Government says it will cover the first 6 months of interest payments);
- new legal powers in the ‘Covid Bill’ enabling Government to offer further financial support necessary to help businesses;
- £20 billion of business rates support and grant funding to help ‘highly affected firms’ manage their cashflow through this period, notably by increasing grants to small businesses eligible for Small Business Rate Relief from £3,000 to £10,000.
The full Government statement can be viewed here.