The chancellor has announced an offer of 100% guarantees on ‘bounce-back loans’ of up to £50,000 for the smallest businesses affected by the pandemic.
Announced yesterday (April 27), the new fast-track finance scheme, which could benefit many jewellery businesses in the UK, has been designed ensure small firms who need vital cash injections to keep operating during lockdown can get finance in a matter of days
Under the micro-loan scheme, businesses will be able to apply for bounce-back loans up to the value of 25% of their turnover, with a cap of £50,000, whereby no capital or interest repayments will be due for one year. Instead, the government will pay the interest for the first 12 months.
Chancellor, Rishi Sunak, says the scheme will start next week, with loans set to be made available via an online application from Monday morning (May 4).
According to Sunak, these loans will be easy to apply for and businesses will not be subject to liability tests or complex eligibility criteria.
Businesses are expected to receive the loans within 24 hours of approval.
The chancellor says: “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.”