Chancellor responds to small businesses cry for help
Our small business voices have been heard by the government, those businesses stuck in the queue for loans or those simply dismissed by the banks were handed a lifeline yesterday by the Chancellor Rishi Sunak.
Mr Sunak announced yesterday that he would launch a scheme next week where small businesses would be able to access 100% state-backed loans. The scheme called the Bounce Back Loan Scheme will be for loans between £2,000 and £50,000.
Highlights
- The government will guarantee 100% of the loan;
- There won’t be any fees or interest to pay for the first 12 months;
- Loan terms will be up to 6 years;
- No repayments will be due during the first 12 months;
- The government will work with lenders to agree a low rate of interest for the remaining period of the loan;
- The scheme will be delivered through a network of accredited lenders.
You can apply for a loan if your business
- is based in the UK
- has been negatively affected by Coronavirus
- was not an ‘undertaking in difficulty’ on 31 December 2019
The following businesses are not eligible to apply
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- further-education establishments, if they are grant-funded
- state-funded primary and secondary schools
If you’re already claiming funding
You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).
We will update you with more details on the Bounce Back Loan Scheme as and when it’s released, but this is a positive step by the Chancellor to support small businesses.
If you need to ask our expert team a question please Call now on 0330 22 33 660 and we will be happy to assist.