The UK government will guarantee £330 billion of bank loans to firms to stop them from going bankrupt during the coronavirus outbreak, Chancellor Rishi Sunak has said.
Speaking at a press conference alongside Boris Johnson, he said the government would guarantee the lending package — which is equivalent to 15% of the UK’s GDP — in order to support both large and small businesses struggling to pay rent and salaries. Further money will be available if businesses demand it.
“Today I am making available an initial £330 billion of guarantees, equivalent to 15% of our GDP,” he said.
“That means 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. If demand is greater than the £330 billion I am making available today, I will go further and provide as much capacity as required.