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Sunak unveils 100% state-backed loans for small firms

Sunak unveils 100% state-backed loans for small firms

Business
Media playback is unsupported on your device Small firms are to get access to 100% taxpayer-backed loans after they raised concerns about slow access to existing coronavirus rescue schemes.Chancellor Rishi Sunak told the House of Commons the scheme would start next week, offering firms loans up to £50,000 within days of applying.It aims to unlock a backlog of credit checks by banks amid fears many small firms could fold before getting loans.The scheme requires filling in a two-page self-certification form online.The loan terms mean that no capital or interest repayments will be due for one year. Instead, the government will pay the interest for the first 12 months.Banks have come under fire for delays in handing out loans, but have blamed the
Sunak hatches new loan scheme for ailing companies

Sunak hatches new loan scheme for ailing companies

Business
A new coronavirus bailout scheme that could cost billions of pounds is being drawn up by ministers to channel bigger loans to companies teetering on the brink of collapse.Sky News has learnt that the Treasury is circulating a document among City institutions to canvas ideas for a mechanism that would pool individual loans into securitisation vehicles which would be partly backed by the government or sold to the Bank of England. Sources said this weekend that the programme was being devised with the objective of supporting companies in sectors including - but not restricted to - hospitality, retail and aviation. It would only be available to privately held companies "which make a material contribution to the UK economy", the Treasury document, a copy of which has been passed to Sky News...
Coronavirus: Sunak to overhaul SME loan scheme

Coronavirus: Sunak to overhaul SME loan scheme

Business
The chancellor is preparing to unveil an overhaul of his emergency aid scheme for small businesses (SMEs) amid warnings about a deluge of insolvencies as companies struggle to access funds from a banking system creaking under the COVID-19 crisis.Sky News has learnt that Rishi Sunak will announce in the coming days that a key feature of the Coronavirus Business Interruption Loan Scheme - the requirement for banks to first assess whether SMEs are eligible for their other lending options - will be removed. Mr Sunak and his officials at the Treasury are understood to have been in talks with the participating lenders, which include high street giants such as Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland, on Wednesday. Image: A coron...
Cash handouts for self-employed expected as Sunak to reveal new COVID-19 package

Cash handouts for self-employed expected as Sunak to reveal new COVID-19 package

Business
A coronavirus bail-out for the self-employed is being unveiled by the chancellor after pressure from MPs, but handouts could go to only one in three of the five million who work for themselves.Rishi Sunak will announce an emergency package at Boris Johnson's daily Downing Street news conference, promising help for groups such as builders, taxi drivers, hairdressers and childminders. But while he will promise to match the 80% of earnings he promised staff employees last Friday, the monthly cap is likely to be lower than the £2,500 in that coronavirus scheme because many self-employed pay less tax.And it is likely only about 1.7 million, a third of the UK's self-employed, will qualify, with those who have separate earnings as company employees and those on Universal Credit - already promised