A new fast-tracked loan scheme of up to £50,000 for small businesses has been welcomed by Preseli MP Stephen Crabb.
The new Bounce Back Loans scheme announced by Chancellor Rishi Sunak will provide loans of up to £50,000 to some of the smallest businesses affected by the coronavirus pandemic.
The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days, with the UK Government paying any fees and interest for the first 12 months and guaranteeing 100% of the loan. No repayments will be due during the first 12 months either.
The loans will be easy to apply for through a short, standardised online application. These should reach businesses within days- providing immediate support to those that need it as easily as possible.
Speaking following the Chancellor’s announcement, Stephen Crabb said:
“This is another positive step forward in support for small businesses hit by the coronavirus crisis. The main coronavirus business loans scheme has proven too slow and overly complex for the smallest companies struggling with cashflow at this time. This new Bounce Back scheme is much more suitable and will get to where it is needed quickly.”
“Add this support together with the other measures already announced, and it’s clear that the UK Government is doing all that it can to safeguard businesses so that they can help kickstart the economy once we’re through this pandemic.”
The scheme will launch for applications on Monday 4 May. Firms will be able to access these loans through a network of accredited lenders.
The UK Government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan.