COVID-19 Update – 28 April – New small business micro-loan scheme announced

On the 27 April, the chancellor announced they will introduce a Bounce Back loan scheme to enable small businesses to apply for up to £50k if they have been affected by the coronavirus measures.

The government have said this will be a simple and quick solution with businesses being able to apply using a two-page standard form with no forward-looking business viability tests or eligibility criteria.

The scheme opens on 4 May with loans available from a minimum £2,000 up to a maximum of £50,000, or 25% of business turnover, and loans will be interest free for the first 12 months. No repayments will be due during the first 12 months.

Businesses will be able to apply for these loans through the existing network of accredited lenders and will be paid within 24 hours of approval. The scheme will be 100% government backed guarantee for the lenders and so should help speed up the processes compared to earlier loan schemes where the lenders had to asses their exposure.

Read more here

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