Chancellor announces ‘short and simple’ Bounce Back Loans worth up to £50,000 to help small businesses hit by the Coronavirus crisis.
- 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
The Chancellor Rishi Sunak has today (Monday 27 April) announced that small businesses will benefit from a new fast-track finance scheme which will provide lenders with a 100 per cent 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.
The new Bounce Back Loans scheme will provide loans to a maximum of £50,000, or 25 per cent of turnover, and aims to help bolster the existing package of support available to the smallest businesses affected by the Coronavirus pandemic.
According to Government, the loans will be easy to apply for through a short, standardised online application.
“There will be no forward-looking tests of business viability; no complex eligibility criteria; just a simple, quick, standard form for businesses to fill in.
“For most firms, loans should arrive within 24 hours of approval,” Mr Sunak says.
The scheme will launch for applications on Monday 4 May. Firms will be able to access these loans through a network of accredited lenders.
If you or a client are considering applying to the Government loan scheme to support your business during this unprecedented time, please contact your usual Beavis Morgan Client Partner or email firstname.lastname@example.org.
For further information about the Government measures to protect individuals and businesses, visit our COVID-19: Support for UK businesses hub.