Small businesses will be eligible for new loans worth up to £50,000 in the coronavirus crisis.
The 'Bounce Back' loans will be backed by a 100% government guarantee, Chancellor Rishi Sunak said.
The top Tory said it was the latest move to shield the economy and workers from the coronavirus shutdown.
But it comes after the Government faced weeks of criticism for slow progress in getting government-backed credit to companies.
And as recently as last week, Mr Sunak opposed 100% government guarantees - suggesting the 80% guarantee on an existing loan scheme was enough.
Here's how the new loans work and how to apply.
What has changed?
Under the existing scheme, Coronavirus Business Interruption Loans (CBIL) worth up to £5m are offered to small firms with a certain level of turnover.
But they are only backed by the government up to 80%, leading to a flood of complaints that firms were struggling to get the money out of lenders.
Chancellor Rishi Sunak made reforms to CBIL, but he still faced calls to raise the guarantee from 80% to 100%.
Instead, he has decided to launch a brand new scheme with 100% guarantees, but worth a much smaller £50,000.
Why did it need a new scheme?
Sources suggested the difference was one of scale. CBILS is worth up to £5million per firm - meaning 100% guarantees would have been more expensive for the government.
The other issue is speed. Having a smaller cash amount means there can be fewer checks and the money can go out of the door more quickly.
How will the new loans work?
Businesses will be able to borrow between £2,000 and £50,000, with the risk underwritten by the government.
The aim is to make it much faster for the cash to get to smaller businesses, who have seen delays going through regulation checks from banks.
How much are they worth?
According to Rishi Sunak: "Businesses will be able to apply for these new bounce back loans for 25% of their turnover up to a maximum of £50,000".
The government will cover interest and fees for the first year, with firms expected to repay the loans for five years after that.
Sources insisted the interest rate - which some lenders were accused of inflating under CBIL - will be very low.
When can you apply for them and where?
The scheme will launch for applications on Monday 4 May and firms will be able to access these loans through lenders accredited through the British Business Bank.
The loans will be available from 9am with "no forward-looking test of business viability, no complex eligibility criteria, just a simple, quick standard form for businesses to fill in".
Firms are expected to get funding within 24 hours of applying.
Does my firm qualify?
There is no limit on a firm’s turnover and firms do not need to show proof of turnover. But sources expect only smaller firms will apply because of the limit on funds.
How will they help small businesses?
The government says it has designed the scheme to be fast, and affordable.
Banks have reportedly agreed on low-interest rates with the government, who will cover those payments for the first year.
The 100% backing from the Treasury will also allow the banks to carry out fewer checks, although they will still be subject to fraud investigations, meaning they should be approved quickly.
Can firms apply to both the old and new scheme?
No.
Firms can only apply to either the CBIL scheme or the Bounce Bank loan, not both.
However, if they have been rejected for CBIL they can now apply again for the Bounce Back loan.
How much will it cost the taxpayer?
There is no public estimate of how much the new bailout will cost the taxpayer.
