Small businesses boosted by bounce back loans, a new 100% government backed loan scheme.
The Chancellor announced on Monday 27th April that small businesses could benefit from this new scheme. It’s a fast-track finance scheme providing loans with 100% government guarantee.
Businesses will be able to borrow between £2,000 and £50,000 and be able to access the money within days. The loans will be interest free for the first 12 months and applying is a simple process via a short form.
These new loans will help bolster the existing support package available to small businesses affected by the coronavirus pandemic.
The government will pay any fees and interest for the first 12 months and provide lenders with the guarantee. No repayments will be due during the first 12 months.
The loans will be easy to apply for, through a short, standardised online application. The loan should then reach businesses within days.
Our smallest businesses are the backbone of our economy and play a vital role in their communities. This new rapid loan scheme will help ensure they get the finance they need quickly to help survive this crisis.
This is in addition to business grants, tax deferrals, and the job retention scheme, which are already helping to support hundreds of thousands of small businesses.Chancellor Rishi Sunak
The bounce back scheme will launch for applications on Monday 4th May.
Read more about help for employers or self employed during COVID-19 here.