New Loan Scheme Announced to Support Small Businesses

The Chancellor has launched a new 100% Government‐backed Bounce Back Loan Scheme for small businesses which will open for applications on Monday 4 May:

• Small businesses will be able to borrow between £2,000 and £50,000 from an accredited lender and access the cash within days
• The Government will pay any fees and interest for the first 12 months, as well as providing lenders with a 100% guarantee for the loan
• No repayments will be due during the first 12 months
• Loans can be applied for online using a short and simple form.

The new scheme will run alongside the existing Coronavirus Business Interruption Loan Scheme, and the Government is taking additional steps to ensure lenders can process applications quickly, including changing the viability tests so that all a bank needs to assess is whether a business was viable pre‐coronavirus.

Read the full release from Government here.