(Alliance News) - The UK government will back loans of up to GBP10 million for companies that need support until the end of the year as its Covid-19 lending schemes run out.
Chancellor of the Exchequer Rishi Sunak told members of Parliament on Wednesday he plans a new Recovery Loan Scheme to tie businesses over.
It replaces the Bounce Back Loan Scheme, the Coronavirus Business Interruption Loan Scheme and its larger sibling CLBILS.
The Treasury will promise banks to cover 80% of what they lend if businesses do not pay back their loans.
Sunak said: "Some businesses will also need loans to see them through. As the Bounce Back Loan and CBIL schemes come to an end, we're introducing a new Recovery Loan Scheme to take their place.
"Businesses of any size can apply for loans from GBP25,000 up to GBP10 million, through to the end of this year."
More than GBP70 billion has been lent under the BBLS, the CBILS and the CLBILS since the launched last year.
By August Graham, PA City Reporter
source: PA
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