April - May Mag Issue 25 Paperturn - Page 18



NEWS
NEW BOUNCE BACK LOANS LAUNCH
Britain’s small businesses will be able to
apply for quick and easy-to access loans of
up to £50,000 from today – with the cash
expected to land within days.
The Bounce Back loan scheme will
make sure they get the finance they need
- helping them bounce back and protect
jobs.”
Business Secretary Alok Sharma said:
“We are backing small businesses, which
are the backbone of our communities, with
the support they need to stay afloat.
small businesses will be able to apply for
quick and easy-to-access loans from
today
businesses will be able to borrow between
£2,000 and £50,000 with the cash arriving
within days
loans will be 100% government backed for
lenders, and businesses can apply online
through a short and simple form
Thousands of small firms and sole
traders – including high street staples like
hairdressers, coffee shops and florists – will
be eligible for 100% government-backed
Bounce Back Loans to help them make it
through the coronavirus outbreak.
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 has also agreed with
lenders that an affordable flat rate of 2.5%
interest will be charged on these loans.
And 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 Bounce Back Loan 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. To apply,
see further information about the Bounce
Back Loan scheme.
The Chancellor of the Exchequer, Rishi
Sunak, said:
“Small businesses will play a key role
creating jobs and securing economic
growth as we recover from the
Coronavirus pandemic.
18
This new scheme of 100% governmentguaranteed loans gives owners of even
the smallest businesses the confidence
and flexibility to borrow a sum which
works for them. This will help ensure they
can continue to trade, and be a key part of
our efforts to reboot the British economy.”
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.
Further Information
Eligible companies will be subject to
standard customer fraud, anti-money
laundering (AML) and Know Your
Customer (KYC) checks prior to any loan
being made. Some State Aid restrictions
may apply to applications.
The borrower always remains 100% liable
for the debt.
Government support for business of all
sizes:
Reactions from business groups:
Mike Cherry, National Chair of the
Federation of Small Businesses, said:
“We know many small firms have struggled
to secure small loans speedily. We are
pleased that the Chancellor has listened,
and swiftly developed this new scheme
for small businesses to access finance
quickly, interest-free for the first year and
at an affordable fixed interest rate for the
remainder.”
Tej Parekh, Chief Economist at the Institute
of Directors (IOD) said:
“The government has kept an open ear
to businesses, and continues to adapt
its coronavirus response, which is very
welcome. The business interruption loan
scheme has started to reach firms, but
small firms were still having difficulty
accessing finance. This additional measure
should help more of those firms get the
cash they need to see them through the
weeks and months ahead.”
Stephen Jones, CEO, UK Finance said:
“The Bounce Back Loans Scheme will
help smaller businesses and sole traders
rapidly access the finance they need
by filling in a simple form online with an
accredited lender.”
“This builds upon the broad package of
support that lenders are already offering
to help SMEs through these tough times,
including capital repayment holidays,
extended overdrafts and billions of pounds
worth of lending.”
Turnover
£45m
Investment
grade
Bounce Back Loans (up to £50,000)
X
X
X
Coronavirus Business Interruption
Loan Scheme (CBILS)
X
X
X
Firm Size
Coronavirus Large Business
Interruption Loan Scheme (CLBILS)
Covid Corporate Financing Facility
(CCFF)
X
Job Retention Scheme
X
X
X
Business Grants (dependent on
rateable value of the property)
X
X
X
VAT deferrals
X
X
X
Covering the cost of statutory sick
pay
X
X
X
Covering the cost of statutory sick
pay
X
X

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