Many small businesses are still struggling to access credit. To support these businesses, Rishi Sunak has announced a new bounce back loan, which will allow small businesses to borrow up to £50,000. These loans have a 100% government-backed guarantee for lenders.
The loans will be interest free for the first 12 months and will ensure that small firms who need vital cash will be able to access funds in a matter of days.
Business will be able to apply for loans from £2,000 up to 25% of their business’ turnover. The maximum loan amount is £50,000.
Businesses must be UK based and have been negatively affected by the coronavirus. Businesses must also not have been classed as an ‘Undertaking in Difficulty’ on 31 December 2019.
Note that you will not be able to apply for the scheme if you are already claiming under the Coronavirus Business Interruption Loan Scheme.
How to access the Scheme
The scheme is now open and can be accessed via the British Business Bank.