Updated from 1:52 a.m. EDT The U.K. government Wednesday unveiled a rescue package for the U.K. banking sector in which it will invest up to 50 billion pounds ($87 billion). The government will buy preference shares, and the Bank of England will make at least 200 billion pounds available for banks to borrow. The government also will provide a guarantee of about 250 billion pounds to help refinance debt, Bloomberg reports. The steps to partially nationalize the banking industry provide "the necessary building blocks to allow banks to return to their basic function of providing cash and investment for families and businesses,"' Chancellor of the Exchequer Alistair Darling said in a statement, Bloomberg reports. The U.K. plans to make 25 billion pounds immediately available in the form of preference shares and stands ready to provide an additional 25 billion pounds, according to Bloomberg. The amount available to each bank will vary and will depend on their dividend payouts, executive pay policies and will require the banks to lend to small businesses and homeowners. The government said eight banks, including Barclays ( BCS), Royal Bank of Scotland ( RBS) and Lloyds, have committed to increase their total Tier 1 capital by 25 billion pounds before the end of the year.