UK Government Announces an Offer of 100% Guarantees on “Bounce Back Loans”
The Chancellor Rishi Sunak, on Monday 27th April, has announced an offer of 100 per cent guarantees on “bounce back loans” of up to £50,000 for the smallest businesses affected by the coronavirus outbreak.
“This is addition to business grants, tax deferrals, and the job retention scheme, which are already helping to support hundreds of thousands of small businesses.”
This new micro-loan scheme is designed to help small businesses struggling to access credit during the current lockdown. The scheme would be providing a simple, quick and easy solution for those who are in need of smaller loans.
- These loans would cover 25% of a business’s turnover up to £50,000
- Government is guaranteeing 100% of the loan which will be interest free for first 12 months
- The scheme allows businesses to borrow between £2,000 and £50,000
- 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 loans will be available from 9am 4th May and payments would be made within 24 hours of approval, with “no complex eligibility criteria”
- Applicants will not face a viability test but some fraud checks will have to be completed
- Small companies will be able to apply through an online
