Economics

Sunak unveils state-backed ‘bounce back loans’ to support small businesses

Smaller businesses will be given access to 100% government-backed loans in a bid to strengthen the current support measures available to UK firms affected by the coronavirus pandemic.

12 Jun 2020 . 2 min read

On Monday 27 April chancellor Rishi Sunak announced a new loan scheme to help Britain’s small businesses, with applications for loans of between £2,000 and £50,000 ready to be received from Monday 4 May.

These ‘bounce back loans’ will be provided by commercial lenders, and will be interest free for the first year with no repayments due during this period.

The government has said these new measures are intended to help companies currently struggling to access credit via other previously announced financial support measures, with cash made available to successful bounce back loan applicants in “a matter of days”. It added that the application process will be “easy” for businesses via a “short, standardised online application”.

Sunak said: “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.”

Business leaders have welcomed the new loan scheme. Dame Carolyn Fairbairn, director-general of the Confederation of British Industry, commenting: “Sole traders, micro-firms and entrepreneurs will now have a simple route to fast finance to stay afloat, without red tape or time-consuming checks.”

For more details on how to apply for a coronavirus Bounce Back Loan, visit GOV.UK .

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