Government announce 100% state-backed loans for small firms
It was good news for small businesses yesterday after the Government announced a new 100% taxpayer-backed micro loan scheme, providing a simple, quick, easy solution for those in need of smaller loans.
Businesses will be able to apply for these new Bounce Back Loans for 25% of their turnover, up to a maximum of £50,000, with the government paying the interest for the first twelve months.
The loans will be available from 9am on Monday 4th May 2020.
There will be no forward-looking tests of business viability and no complex eligibility criteria; just a simple, quick, standard form for businesses to fill in online.
For most firms, loans should arrive within 24 hours of approval.
In another significant change, firms applying for the new loans will now only have to prove that they were viable in the past before the crisis, not that they will viable after the crisis.