New 100% government backed loan scheme for small business

The Chancellor Rishi Sunak told the House of Commons today that small businesses are to get access to 100% taxpayer-backed loans after they raised concerns about slow access to existing coronavirus rescue schemes.

The scheme will start next week, offering firms loans up to £50,000 within days of applying.

The key points to note are:

• businesses will be able to borrow between £2,000 and £50,000 and access the cash within days

• loans will be interest free for the first 12 months, and businesses can apply online through a short and simple form

Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders.

The government will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.

For more information visit: https://www.gov.uk/government/news/small-businesses-boosted-by-bounce-back-loans