Government has announced that businesses will be able to borrow between £2,000 and £50,000, and access the cash within days. Loans will be interest free for the first 12 months, and businesses can apply online through a short, simple form.
Chancellor Rishi Sunak said the new Bounce Back Loans scheme will help bolster the existing package of support available to the smallest businesses affected by the Coronavirus pandemic.
The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days. Government will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.
The aim is that the scheme will provide a simple, quick, easy solution for those in need of smaller loans.