This new Bounce Back Loans scheme is welcomed and will contribute to the existing package of support to small businesses during this coronavirus pandemic, alongside the business grants, tax deferrals and furloughing support to retain jobs.
Businesses will be able to apply for loans between £2,000 and £50,000 from the 4th May 2020. These will have no interest or fees for the first 12 months and applications will be through a short, standardised and simple form. The repayments will not be due during the first 12 months either.
Business Secretary Alok Sharma said:
“Our small businesses are vital in ensuring our communities thrive and will be crucial in creating jobs and securing economic growth as we recover.
This rapid loan scheme offers additional protection so small companies across the country can get access to the finance they need immediately, as part of the unprecedented package of support we have put in place.”
Matthew Sims, Chief Executive of Croydon BID said:
“Whilst we welcome the news of this Bounce Back Loans scheme, we are conscious that our businesses in the retail, leisure and hospitality industries are being hit the hardest by the COVID-19 crisis, Therefore, we continue to ask of government to consider our #Raisethebar campaign and increase the threshold for cash grants from a rateable value of only £51,000 to £150,000 to support local businesses nationally.”