New bounce back loans launched 4th May 2020
Britain’s small businesses will be able to apply for quick and easy-to access loans of up to £50,000 from today – with the cash expected to land within days.
Thousands of small firms and sole traders [are] eligible for 100% government-backed Bounce Back Loans to help them make it through the coronavirus outbreak.
- small businesses will be able to apply for quick and easy-to-access loans from today
- businesses will be able to borrow between £2,000 and £50,000 with the cash arriving within days
- loans will be 100% government backed for lenders, and businesses can apply online through a short and simple form
The government has agreed that an affordable flat rate of 2.5% interest will be charged on these loans. Businesses that have a Coronavirus Business Interruption Loan of £50,000 or less can apply to switch over.
The Chancellor of the Exchequer, Rishi Sunak, said:
Small businesses will play a key role creating jobs and securing economic growth as we recover from the Coronavirus pandemic.
The Bounce Back loan scheme will make sure they get the finance they need – helping them bounce back and protect jobs.
Business Secretary Alok Sharma said:
We are backing small businesses, which are the backbone of our communities, with the support they need to stay afloat.
This new scheme of 100% government-guaranteed loans gives owners of even the smallest businesses the confidence and flexibility to borrow a sum which works for them. This will help ensure they can continue to trade, and be a key part of our efforts to reboot the British economy.
As part of the scheme, small businesses can borrow between £2,000 and £50,000. The government will provide lenders with a 100% guarantee and cover the cost of any fees and interest for the borrower for the first 12 months. No repayments will be due during this period to enable firms to get back on their feet. The borrower always remains 100% liable for the debt.
Mike Cherry, National Chair of the Federation of Small Businesses, said:
“We know many small firms have struggled to secure small loans speedily. We are pleased that the Chancellor has listened, and swiftly developed this new scheme for small businesses to access finance quickly, interest-free for the first year and at an affordable fixed interest rate for the remainder.”