‘Bounce Back Loan Scheme’ announced for small firms
28th April 2020
From Monday 4 May 2020, small businesses will be able to access 100% state-sponsored loans. Businesses will be able to borrow between £2,000 and £50,000.
Chancellor Rishi Sunak revealed the scheme after widespread concerns that access to finance under the existing Coronavirus Business Loan Interruption Loan Scheme was taking too long. UK Finance revealed last week that only 16,624 out of more than 36,000 applications were successful since the scheme launched on 2 April 2020.
Sunak said the new microloans could be in a firm's bank account within a day and that no capital or interest repayments will be due for a year.
HMRC has said it will be ‘easy to apply’ for this funding and the scheme will require just a two-page, self-certification form to be completed online. Firms applying for the new microloans will only have to prove they were viable in the past before the crisis.
"Smaller businesses will be able to get up to £50,000 very easily with a simple, standardised form and have the money within 24 hours. It will make an enormous difference to millions of small businesses around the UK. It will be much easier for a business to tick the boxes if they're eligible, which the vast majority of them will be."
We will be keeping an eye on any further announcements about this scheme and will update our blog with any guidance on how to access this scheme. You can access all our coronavirus advice and guidance at our Coronavirus Information Hub.