• On 27th April, Chancellor Rishi Sunak announced the new Bounce Back Loans scheme that will provide loans of up to £50,000 to small businesses.
• The fast-track finance scheme will provide loans with an 100% government-backed guarantee for lenders.
• The scheme will allow small firms to keep operating with the vital cash injections they need to keep their business running.
• Under the scheme, businesses will be able to borrow loans of between £2,000 and £50,000, and the loan terms will be up to 6 years.
• Businesses can apply online with a short form and the loan will reach businesses in a matter of days in order to provide immediate support.
• The government will be able to provide lenders with an 100% guarantee for the loan and will pay any fees and interest for the first 12 months Therefore, small business will be able to take out these loans interest free and with no repayments due for the first 12 months.
• The scheme opened for applications on Monday 4 May.
• A number of accredited lenders have been named by the government under the scheme, and the government will direct your application to the most
appropriate lender under their business funding platform.
• If you are based in the UK and your business has been affected negatively, specifically by Coronavirus, then your business is eligible for the scheme.
If you have any questions, please contact Georgina Kyriacou for legal advice.
This article is prepared with the intention of providing general information on the changes in law. Philip Ross Solicitors accept no responsibility for errors it may contain and the coverage of the topic is not comprehensive. You are advised to speak directly to the writer or another partner within this firm within any specific enquiries on the topic addressed.