Investor Plans £15 Billion Support for UK Companies Toiling With Crisis Loans

One of the UK’s biggest investors in smaller companies is planning a £15bn fund to help bail out thousands of businesses that will struggle to repay state-guaranteed coronavirus loans, the Financial TImes reported. Stephen Welton, chief executive of Business Growth Fund, which is backed by the big UK banks, said he was talking to investors, the government and his shareholders about proposals for the public-private fund. Mr Welton warned that the UK faced a more devastating economic crash than the last financial crisis, pointing to the threat of “a totally unsustainable debt mountain” following the state-backed bailout schemes. He said new equity would be urgently needed to buy out this debt when borrowers did not repay it, predicting “a lot of businesses will fail and a lot of people will be made redundant”. “Some sectors will never get back to where they were in 2019,” he said. “Business will emerge indebted. There is a risk of turning an economic crisis into a banking crisis.” Read more