Applications open today for the new 'bounce back' loan scheme that aims to support thousands of small businesses through disruption caused by Covid-19.
Britain’s businesses will be able to apply for quick and easy-access loans of up to £50,000 from today, with the first payments expected to arrive within days.
The scheme should be particularly helpful for small firms and sole traders such as high street staples like hairdressers, coffee shops and florists. Each will be eligible for a 100% government-backed bounce back loan to help them make it through the next few weeks and months.
From 9am this morning, small business owners can apply to accredited lenders by filling out a simple online form, with only seven questions.
The government and lenders have agreed an affordable flat rate of 2.5% interest, which will be charged on these loans. 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 this generous new scheme.
The scheme is the latest step in a package of world-leading support measures launched by Chancellor Rishi Sunak – with £7.5 billion already awarded in business grants, 4 million jobs supported through the job retention scheme and generous tax deferrals supporting hundreds of thousands of firms.
James Wild MP, said:
Small businesses keep our local communities and economy thriving. They provide vital services and employment across Norfolk.
The Bounce Back loan scheme will make sure these growing businesses get the finance they need to survive this difficult period.
As part of the scheme, small businesses can borrow between £2,000 and £50,000. The government will provide lenders with a 100% guarantee and cover the cost of any fees and interest for the borrower for the first 12 months. No repayments will be due during this period to enable firms to get back on their feet.
The loans are available through a network of lenders, including the five largest banks.
