Chancellor Rishi Sunak has today announced that small firms are to get access to 100% taxpayer-backed loans. The news comes after business owners raised concerns about slow access to existing coronavirus rescue schemes.
The scheme will open on Monday the 4th May and will offer firms loans up to £50,000 within days of applying and should be easier to achieve with a simple two-page self-certification form online.
The aim of the scheme is to unlock the current backlog of credit checks by banks amid fears many small firms could fold before getting loans.
Under the terms of the loan there are no capital or interest repayments will be due for one year with the government paying the interest for the first 12 months.
Further details on the scheme can be found on the GOV.UK website here: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
Chairman of the Federation of Small Businesses, Mike Cherry, said it would “give hope to thousands” of firms.
“To date, the existing interruption loan scheme has not been working for the small firms that make-up 99% of our business community.
“The decision by the chancellor to listen to our recommendation for a 100% guarantee on smaller loans, alongside the creation of a new fast-track system for those applying for them, will give hope to thousands.”
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