Launch of a recovery loan program for businesses
The government is also complementing this with the Jobs Plan, which focuses on protecting, supporting and creating jobs across the country through the Kickstart program, T-level and a national career service.
The program, which was announced in the budget and runs until December 31, 2021, will be administered by the British Business Bank, with loans available through a diverse network of accredited commercial lenders.
26 lenders have already been accredited for the first day of the program, and more will be available soon. The government will provide an 80% guarantee for all loans. Interest rates have been capped at 14.99% and are expected to be much lower in the vast majority of cases. Ministers urged lenders to ensure they keep rates low to help protect jobs.
The turnaround loan program can be used as an additional loan in addition to the support received from emergency programs, such as the rebound loan program and the coronavirus business interruption loan program.
Rain Newton-Smith, CBI Chief Economist, mentionned:
“The coronavirus loan programs have provided a vital lifeline for businesses, and so its successor – the New Stimulus Loan Program – comes as a huge relief for businesses.
“These loans can be taken out alongside existing COVID loans to help businesses refinance, restructure and grow.
“It’s vital support that remains as restrictions ease and demand returns to normal, enabling businesses to recover, save jobs and support reopening.”