Bounce back loans

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Being available from Monday 4th May, these look like they will worth having for any small business. Quick and easy to apply for, loan up to 25% of turnover (£2K to £50K), no interest or repayments for a year, 100% government backed. Just not for businesses that were previously in financial distress.

The bounce back loan scheme lets businesses apply for a loan of up to 25% of their annual turnover, up to a maximum of £50,000, with the Government paying the interest for the first twelve months.
These loans will be available from 9am next Monday.  There will be no complex eligibility requirements, no forward-looking tests of business viability. Just a simple, quick, standard form for most businesses to fill in. And loans should arrive within 24 hours of approval.
For this specific scheme, the Government will support lending as well by guaranteeing 100% of the loan for the lender.
These new bounce back loans target that small extra support for those who need it most. And that will support our small business owners get through this crisis.

How businesses reacted to the Bounce Back Scheme✔

Many businesses and business representatives have already spoken positively of the new scheme. Dame Carolyn Fairbairn, the CBI Director-General, recently said:
“The Chancellor’s new 100% guaranteed loan scheme for small businesses is transformational. Sole traders, micro-firms and entrepreneurs will now have a simple route to fast finance to stay afloat, without red tape or time-consuming checks.

“Thousands of businesses could be saved by this lifeline. Banks now need to continue their work in overdrive to get the loans flowing faster.

“It’s good to see the Chancellor listening to business, proving that where there’s a need to adjust schemes, he will do what it takes. It will be vital to maintain this approach in the months to come. Every job saved today will ensure a faster recovery tomorrow.”
And Mike Cherry, National Chairman of the Federation of Small Businesses, said:
“This crucial new initiative should enable thousands of small businesses to access the working capital they need quickly, helping to protect the millions of jobs they provide in every part of the UK.

This step forward marks another decisive intervention from the Treasury and the Business Department, building on existing support in an innovative way. Swift delivery is now key, and we also look forward to working with government in the long-term to enhance market competition, including that provided by non-bank lenders.

We are pleased to see the Chancellor and the Business Secretary listening to the needs of small businesses, and we will continue to work with them to make sure small firms and the jobs they provide are protected throughout this public health challenge and that small firms are at the forefront of leading the recovery.”
The scheme is simple, easy, quick, and will support businesses stay afloat.

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