The government has announced a new 100% government backed loan scheme for small businesses.
Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders, the Chancellor announced yesterday.
Rishi Sunak said 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.
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
Loan terms will be up to 6 years
No repayments will be due during the first 12 months
When does the scheme launch?
The scheme will launch for applications on Monday 4 May. Businesses will be able to access these loans through a network of accredited lenders.
The government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan:
Am I eligible?
You can apply for a loan if your business:
is based in the UK
has been negatively affected by Coronavirus
was not an ‘undertaking in difficulty’ on 31 December 2019
More information about the scheme will be published shortly.