Bounce Back Loans: New 100% government backed loan scheme for small business

The chancellor Rishi Sunak has announced a new support measure for smaller businesses with a new ‘bounce-back’ loan scheme which will be provided by accredited lenders with a fast-track application process and 100% guaranteed by the Government.

The headlines of the measure:

  • businesses will be able to borrow between £2,000 and £50,000 and access the cash within days
  • the loans will be made available up to 25% of business turnover
  • no repayments will be due during the first 12 months
  • the loans will be interest free for the first 12 months as the government will pay any fees and interest during this period
  • the scheme is due to go live for applications on Monday 4th May 2020 with a short, standardised online application procedure.

To read more details from the government website, visit:

https://www.gov.uk/government/news/small-businesses-boosted-by-bounce-back-loans

Further details are expected over the coming days so stay tuned with us for the latest updates. In the mean time, if you need support for short-term funding, our Corporate Finance team can help guide you through choosing the most suitable options as well as the application process. Get in touch with us today for further support.

*This article was originally published on DTE website. To read similar coronavirus updates, pleases visit DTE Covid-19 Business Support Hub.