Small businesses to have quick access to loans

Small businesses to have quick access to loans

ARTICLE · By Timber Trade Federation · 28 April 2020

A new scheme aims to help small and medium-sized businesses borrow quickly. Loans of between £2,000 and £50,000 are on offer, with the Government to guarantee 100% of the loan with no fees or interest to pay for the first 12 months.

Launching on 4 May 2020, the scheme was announced by Chancellor Rishi Sunak at the daily press conference on Monday 27 April 2020.

This comes after criticism of the speed of delivery of the Coronavirus Business Interruption Loan Scheme (CBILS), with the majority of businesses which have applied yet to receive funds.

The ‘bounce back’ scheme aims to ensure that small firms can access finance in a matter of days, and comes in addition to the existing loans schemes, tax deferrals and grants, such as the Coronavirus Job Retention Scheme.

The Chancellor of the Exchequer, Rishi Sunak, said:

“Our smallest businesses are the backbone of our economy and play a vital role in their communities. This new rapid loan scheme will help ensure they get the finance they need quickly to help survive this crisis.

“This is in addition to business grants, tax deferrals, and the job retention scheme, which are already helping to support hundreds of thousands of small businesses.”

Business Secretary Alok Sharma said:

“Our small businesses are vital in ensuring our communities thrive and will be crucial in creating jobs and securing economic growth as we recover.

“This rapid loan scheme offers additional protection so small companies across the country can get access to the finance they need immediately, as part of the unprecedented package of support we have put in place.”

Firms will be able to access these loans through a network of accredited lenders.