Small businesses boosted by bounce back loans

Small businesses boosted by bounce back loans

As we enter week 6 of lockdown and as we look to the future with hopefully the easing of some of the restrictions that are currently in place the government have launched a 100% government backed loan scheme for small businesses:-

* businesses will be able to borrow between £2,000 and £50,000 and access the cash within days

* loans will be interest free for the first 12 months, and businesses can apply online through a short and simple form

Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders.

The new Bounce Back Loans scheme, which will provide loans of up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.

The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days. The government will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months. Small businesses will be able to access loans worth 25 per cent of their turnover, up to £50,000,

The loans will be easy to apply for through a short, standardised online application. The loan should reach businesses within days, providing immediate support to those that need it as easily as possible.

The scheme will launch for applications on Monday 4 May.

Firms will be able to access these loans through a network of accredited lenders.

Full details to follow once we have them.