New 100% government-backed loan scheme for small business

The government has made available to small businesses a new fast-track finance scheme providing loans with a 100% government-backed guarantee.

Launched on 4 May the bounce back scheme will provide loans of between £2 000 and £50 000.

The government will provide lenders with a 100% guarantee and pay any fees and interest for the first year. Loan terms will be for up to six years and no repayments will be due during the first 12 months.

Businesses can apply if they are based in the UK and have been negatively affected by coronavirus.

The government will work with lenders to ensure loans are advanced as quickly as possible. A flat rate of 2.5% interest will be charged.

Further any business that has already taken out a coronavirus business interruption loan of £50 000 or less can apply to have these switched over to the bounce back scheme.

Mike...