The Chancellor, Rishi Sunak, has announced a new loan scheme. A simple, quick, easy solution for those in need of smaller loans.
Businesses can apply for new Bounce Back Loans up to a maximum of £50,000, or 25% of turnover, with the government paying the interest for the first 12 months.
To government have been in close talks with the banks in recent days and these loans will be available from 9am next Monday (4 May 2020).
There will be no forward-looking tests of business viability; no complex eligibility criteria; just a simple, quick, standard form for businesses to fill in.
For most firms, loans should arrive within 24 hours of approval.
And the Chancellor has decided, for this specific scheme, that the government will support lending by guaranteeing 100% of the loan.
The new Bounce Back Loans carefully target that extraordinary level of state support at those who need it most.
And the £50,000 cap balances the risk to the taxpayer with the need to support our smallest businesses.