The government’s bailouts for small businesses will reviewed to stop banks demanding guarantees or charging high interest.
Last month the chancellor announced the scheme in which the state underwrites 80% of the risk for bank loans of up to £5m.
Rishi Sunak will ban banks from demanding that applicants for loans of up to £250,000 put up their own assets as security, while higher loans will see personal guarantees limited to 20% of the outstanding debt.
He has also warned banks not to “rip off” businesses by charging double-digit interest rates.
