Yesterday, the Chancellor announced the launch of bounce back loans which he called “a simple, quick, easy solution for those in need of smaller loans”.
This comes on the back of criticism that smaller businesses were struggling to get access to much needed credit via the Coronavirus Business Interruption Loan Scheme (CBILS). Many SMEs trying to access loans through CBILS were prohibited by financial hurdles, with around one million of the smallest firms in the UK – including shops and pubs – being excluded.
Bounce back loans will be easier for small firms to access and will mean applicants will receive the money within days, in some cases it could be received within 24 hours. Businesses can apply for the new bounce back loan worth up to 25% of their turnover, up to a maximum of £50,000. The government will provide lenders with a 100% guarantee for the loan, and will cover any fees and interest for the first 12 months.
Applications will open on Monday 4 May, and will be via a short online form (detail to follow).
Commenting on the announcement, Director Andrew Copping said: “These new bounce back loans are a game changer. For SMEs, this is the biggest announcement since furloughing and will fast track them to the credit many of them so desperately need.”
To speak to us about support available to you and your business, please contact your usual relationship practitioner or email us.