This new loan scheme delivered by the British Business Bank, will launch from 23 March 2020 to support small and medium-sized businesses to access bank lending. The government will provide lenders with a guarantee of 80% on each loan to give lenders further confidence in continuing to provide finance to SMEs. The Scheme will support loans of up to £5 million in value and will be interest free for the first 12 months. The scheme applies to UK businesses with a turnover of no more than £45 million per annum.
The Bank of England will also buy short term debt from larger companies under a new Covid-19 Corporate Financing Facility.