THE Government has unveiled a £330billion package to help keep businesses afloat during the coronavirus crisis.
Businesses across the country, both big and small, will soon have access to government-backed loans – even if they have no insurance.
Interest-free business interruption loans will be increased to £5m, up from £1.2m announced at last week’s budget.
No interest will be due for the first six months.
The cash injection was announced by Chancellor Rishi Sunak who spoke at a Downing Street press conference earlier today.
He said that we are living in an ‘economic emergency’ and if this package was not enough, he would go further.
“We have never, in peacetime, faced an economic fight like this one.
“Today I am making available an initial £330 billion of guarantees, equivalent to 15 per cent of our GDP.
“Some sectors are facing particularly acute challenges.
“In the coming days we will also discuss a potential support package specifically for airlines and airports.”
Prime Minister Boris Johnson added: “We must act like any war time government and do whatever it takes to support our economy.”
Mr Sunak also announced:
- A three-month mortgage holiday for those in difficulty because of coronavirus, meaning owners don’t pay a penny
- A 12-month business rates holiday for all shops, pubs, theatres, music venues, restaurants and any other hospitality or leisure business
- A cash grant of up to £25,000 for those businesses with a rateable value of less than £51,000