Chancellor unveils 100% state-backed 'bounce back loans' for small businesses

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The UK’s smallest businesses will have guaranteed access to loans of up to £50,000 within 24 hours of applying, chancellor Rishi Sunak announced on April 27th.

 

The new “bounce back loans” will be 100 % guaranteed by the Treasury, meaning the government will take on all the default risk, and will be available from next Monday.

 

 

Small businesses will be able to access loans worth 25% of their turnover, up to £50,000, and the government will pay the interest for the first 12 months.

 

Banks will not need to perform any forward looking tests of businesses viability. To apply, businesses will complete a simple, quick, standard form and there will be no need to include proof of turnover. For most firms, loans should arrive within 24 hours of approval.