On Monday, under pressure to do more to help businesses weather the impact of the embargo, it announced full state guarantees for loans to small businesses in the UK.
Sunak said the government would provide full state guarantees for business loans of up to £ 50000 ($62000). Sunak had previously opposed government guarantees of 100% for emergency loans to small businesses.
Banks dealing with these loans will not need to conduct credit checks on applicants or assess their long-term viability. The enterprise does not need to repay interest or repayment in the next 12 months.
"Some small businesses still have difficulty getting credit," sunak told parliament. "If we want to benefit from their dynamism and entrepreneurship when the economy recovers, they will need additional support."
Last month, the UK announced an emergency £ 330 billion credit plan, which includes up to £ 5 million in loans to small and medium-sized enterprises, guaranteed by the state at 80 per cent.
But the program started slowly, and many companies said it was difficult to get bank approval.
Sunak said that the banking industry has now provided 20000 loans totaling 3.4 billion pounds through the government's cbils. The Bank of England has also distributed more than £ 14bn outside to larger companies.
Andrew Bailey, President of the Bank of England, hinted this month that providing 100% state guarantees on loans to the smallest companies could improve the backlog of loan applications.
The new plan, known as "bounce back loans" by the government, will be open to businesses next Monday, with the goal of getting funds within 24 hours once they have successfully applied for loans.
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