The government has just announced a brand new Bounce-Back Loan scheme!
Through this, small firms are able to access 100% taxpayer-backed loans offered by the government within days!
The Bounce-Back Loans Explained
Chancellor Rishi Sunak unveiled the latest support scheme after concerns continued about the speed of accessing the current rescue schemes that are available.
The general feedback from businesses has been that the current loan schemes are not landing in bank accounts quick enough.
This is caused by the extra workload that is expected from the banks – meaning that businesses are suffering, and in danger of going under.
However, this new Bounce-Back loan is different: it’s government funded.
This means that the government can underwrite the loans themselves and speed up the process for any small business who is in desperate need.
When Can You Access The Bounce-Back Loans?
The Bounce-Back loan scheme exists to ensure that small businesses who need vital cash injections immediately can keep on operating during these times, getting the money within a matter of days.
Small businesses will be able to access the scheme on the 4th of May, and get a loan of up to £50,000 within days of applying.
The government will be paying the interest on the loans for the first 12 months, meaning that there will be nothing due for 1 year.
Anyone wanting to apply for the loan will be able to apply easily through a short form online.
Chancellor 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.”
He also explained that the micro-loan scheme will provide a ‘simple, quick and easy solution’ for businesses in this critical time.
A Crucial New Initiative
Mike Cherry, the National Chairman of the Federation of Small Businesses, said:
“This crucial new initiative should enable thousands of small businesses to access the working capital they need quickly, helping to protect the millions of jobs they provide in every part of the UK.”
It seems as though businesses are struggling more as the weeks pass by.
However the government’s persistent efforts to adapt schemes and produce new ones, is an encouragement that businesses can get the support they need as the situation changes.
Get More Business Blogs Like This
Interested In Our Accountancy, Tax, Bookkeeping & Payroll Services?
Get In Touch Below