Government revamps emergency business loan scheme after criticism

Rishi Sunak

The government has revamped its emergency loan scheme by extending provisions for larger companies and imposing new rules on lenders to make loans easier to access for smaller businesses.

The Treasury unveiled the new packages overnight following criticism from areas of the business community that larger companies were being left to fend for themselves and smaller organisations were being denied loans by lenders.

It has introduced a new Coronavirus Large Business Interruption Loan Scheme for firms with an annual turnover of between £45m and £500m, providing a government guarantee of 80% on loans of up to £25m.

The government has also banned banks from being able to demand debt-risking personal guarantees on loans of less than £250,000 to expedite the process.

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