Monday 27th April 2020 saw the Chancellor announce a new measure aimed at supporting small businesses recover from COVID-19 with bounce back loans. Small businesses will now be given the opportunity to borrow (without giving security) up to the lower of
- £50,000.
- 25% of the business turnover
The government will fund the interest for the first 12 months and there will be no capital repayments due for that period.
These loans will be accessible within days and carry a 100% government-backed guarantee for the lender – similar to the CBILS loans for larger businesses. Such loans are being put in place to help small businesses receive more support on top of the previously announced measures. The key aspect of these loans being that the cash will be received within days of application and so help small businesses who need a vital cash injection during these times.
These loans will be available through application on a short simple form from Monday 4th May 2020.