More help for small businesses during the coronavirus pandemic announced

The Chancellor has announced a 100% government-backed loan scheme for small businesses, designed to offer up to £50,000 of fast-track finance for those affected by coronavirus

The bounce back loans scheme will enable businesses to borrow between £2,000 and £50,000 and access the cash within days, and in some cases within 24 hours.

Loans will be interest-free for the first 12 months, and businesses can apply online through a short and simple two-page standardised application form. There are no forward-looking business viability tests or eligibility criteria for the finance.

The government will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months.

Rishi Sunak, Chancellor of the Exchequer, said: ‘Our smallest businesses are the backbone of our economy and play a vital role in their communities. This new rapid loan scheme will help ensure they get the finance they need quickly to help survive this crisis.

‘This is in addition to business grants, tax deferrals, and the job retention scheme, which are already helping to support hundreds of thousands of small businesses.’

The scheme will launch for applications on Monday 4 May. Firms will be able to access these loans through a network of accredited lenders.

The government has said it will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan.

Might we suggest that before you apply for a loan that you speak with us to ascertain your current and future financial outlook.