Smallest businesses supported with 100% government guaranteed loans
The Chancellor Rishi Sunak yesterday announced support for the smallest businesses with the launch of the Bounce Back Loan scheme.
After coming under increasing pressure, the chancellor yesterday announced the launch of the Bounce Back Loan scheme which will support the UKs smallest businesses with a 100% government guaranteed loan up to 25% of their turnover, up to a maximum of £50,000. The news will be welcomed by new businesses who have struggled to access the original Coronavirus Business Interruption Scheme (CBILS).
On the scheme the Chancellor said 'Our smallest businesses are the backbone of our economy and play a vital role in their communities. Today's new Bounce Back Loans will help ensure they get the finance they need quickly to help survive this crisis.'
The new scheme will be available from 9am next Monday and is intended to be far easier to access. The main points on the new scheme are:
No forward looking test of business viability
No long winded application and approval process
25% of turnover up to a max £50,000
No fees of interest for the first 12 months
UK Gov 100% guarantee on all Bounce Back Loans
Funds available 24hrs after approval
It's worth noting that businesses cannot apply for this scheme if you're already claiming under CBILS
Whilst the news of the new scheme hit it was still unclear how long the approval process would take however it is really positive news that support for small business is increasing and financial institutions should be buoyed by the 100% government guarantee.
If you are a small business and feel you are eligible for the Bounce Back Scheme get in touch with your bank today. There has been no confirmation of information required to access these new loans but one would presume businesses will need to gather the same information as if they were applying for CBILS.