From 4th May businesses can apply for Bounce Back loans, a new 100% government backed loan scheme for small business.
Businesses will be able to borrow between £2,000 and £50,000 and access the cash within days and loans will be interest free for the first 12 months.
The scheme was announced by the Chancellor, Rishi Sunak on 27th April and 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 and 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 reach businesses within days- providing immediate support to those that need it as easily as possible.
The Chancellor of the Exchequer, Rishi Sunak, said, “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.”
Business Secretary Alok Sharma said, “Our small businesses are vital in ensuring our communities thrive and will be crucial in creating jobs and securing economic growth as we recover. This rapid loan scheme offers additional protection so small companies across the country can get access to the finance they need immediately, as part of the unprecedented package of support we have put in place.”
The scheme will launch for applications on Monday 4 May. Firms 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.
Apply for a Coronavirus bounce back loan here.
Find a summary of support for businesses in our Coronavirus information hub here.