Yesterday, the Chancellor announced the Bounce Back Loan scheme, directed at smaller businesses who need funds fast and who have had difficulty with the Coronavirus Business Interruption Loans.
Opening on 4th May, the Bounce Back Loan Scheme will enable the Government to target the smallest businesses and allows them to borrow between £2,000 and £50,000, making sure they will be able to have access to cash within days. Instead of the 80% guarantee from the Government with CBILS, the Bounce Back Loan scheme will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months, with no repayments due during the first 12 months.
We know that businesses are the backbone of our economy and bring so much to the local community, we want to do everything we can to protect them during this difficult time. Coronavirus has hit businesses hard and we’ve listened to the reports from small businesses and have taken that fully into account. The Chancellor is hopeful that this scheme is another lifeline - along with business grants, tax deferrals and the job retention scheme - that will get small businesses the funds they need to survive this crisis.
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