Highlights:
- 100% Government-backed guarantee for the Lenders.
- Small companies can have Immediate access to the loan of up to £50,000.
- Applications for this scheme initiated from 4th May through a network of accredited lenders.
The Scheme
Bowing under pressure, the Chancellor has announced small businesses will benefit from a new fast-track finance scheme providing loans with a 100 per cent government-backed guarantee for lenders.
Chancellor of the Exchequer Rishi Sunak said the new Bounce Back Loans scheme, which will provide loans of up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.
Details
Under the scheme, the government will provide lenders with a 100 per cent guarantee for the loan and pay any fees and interest for the first 12 months. Additionally, no repayments will be due during the first 12 months.
The loans will be easy to apply for through a short, standardized online application, with the funds said to reach businesses within days, providing immediate support to those that need it as easily as possible.
This rapid loan scheme offers additional protection so that the small companies across the country can get access to the finance they need immediately.
The scheme will launch for applications on Monday, 4 May, with firms able to access loans through a network of accredited lenders.
The government assured it will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardized level of interest for the remaining period of the loan. In order to apply, or to know more about the scheme, please contact us.
