Britain will launch on Tuesday a government-backed loan scheme to help struggling companies as the economy reopens from a strict lockdown, offering maximum credit of $13.9 million.

Finance minister Rishi Sunak said the loans, ranging from $30,000 to $11.8 million, would replace existing Covid-19 programs and add to a grant scheme that has been launched to help companies restart trading.

The scheme will be administered by the British Business Bank, with loans available through commercial lenders and the government providing an 80 per cent guarantee.

It will run until the end of this year and interest rates will be capped at 14.99 percent. The government is urging lenders to keep rates down to protect jobs.

It said that so far its emergency loans had supported more than $88 billion of financing.

“As we safely reopen parts of our economy, our new recovery loan scheme will ensure that businesses continue to have access to the finance they need as we move out of this crisis,” Mr Sunak said.