The Chancellor, Rishi Sunak has announced a new Government backed lending scheme targeted at small businesses. The fast-track finance scheme will provide loans with a 100% government-backed guarantee for lenders under the name of The Bounce Back Loan Scheme.
The scheme, which will provide loans of up to £50,000, will help bolster the existing package of support available 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 key headlines of the scheme are:
- The Government will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months.
- The maximum loan will be 25% annual turnover subject to a cap of £50,000.
- 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 scheme will launch for applications on Monday 4 May and businesses will be able to access these loans through a network of accredited lenders.
This welcome new scheme should enable small businesses to access much needed working capital quickly, helping to protect the millions of jobs they provide in every part of the UK.
If you would like any help in deciphering this information, preparing to apply to use these measures or help understanding your cashflow issues, please contact us as soon as you can.
