Chancellor rules out 100% CBILS guarantee
Chancellor Rishi Sunak (pictured) has ruled out a 100% government guarantee adding that he was “not convinced” it was required.
Governor of the Bank of England Andrew Bailey had suggested that a move to 100% guarantees would help speed up lending to firms in need.
Former Conservative Chancellor George Osborne and current Shadow Business Secretary Ed Miliband have both also voiced support for the move.
The Coronavirus Business Interruption Loan Scheme (CBILS) was set up to offer loans to firms with a turnover of up to £45m.
Businesses can access the money through more than 40 approved lenders and 80% of the loan is already guaranteed by the government.
He said: “12,000 loans have now gone out – almost double last week and double the week before.
“I’m watching very carefully to ensure money does get to the businesses that need it.”
He added that his most recent figures show that there is currently an 80% to 90% approval rate.
Last week the Office for Budget Responsibility (OBR) suggested that the economy could shrink by an unprecedented 35% between April and June if the lockdown, which began on March 23, was to last for three months.