Yesterday (27 April 2020) the UK Chancellor announced a new fast-track loan scheme for small businesses which benefits from a 100% government-backed guarantee for lenders.
The Bounce Back Loans scheme offers sole traders, micro-firms and entrepreneurs with much needed protection and support during the coronavirus pandemic. The scheme will be offering businesses loans of between £2,000 and £50,000, whilst the government will provide the lender with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. The borrower will not be required to make any repayments during the first 12 months.
In addition, applications under this scheme will be made via a short, standardised online application process, which means that businesses will have access to finance in a matter of days.
The scheme will be launched ready for applications on Monday 04 May 2020.