Small business can now benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders, the chancellor Rishi Sunak has said.
This new Bounce Back Loans scheme, which will provide loans of up to £50,000, aims to help bolster the existing package of support available to the smallest businesses affected by the current pandemic. Loans cannot be bigger than 25% of the borrowing firm’s turnover.
The loans, which can start at £2,000 have no repayments due during the first 12 months. The loans will also be easy to apply for through a short, standardised online application. The promise from the government is that the loans will reach businesses within days, providing immediate support to those that need it.
The scheme opens at 9am on Monday 4 May.