Small businesses in Gedling borough can apply for fully government-guaranteed loans of up to £50,000 from next Monday to help them get through the coronavirus crisis.
Chancellor Rishi Sunak said yesterday that the new “bounce back loans” would have the interest paid by the Government for the first 12 months.
The new scheme is particularly intended for the smallest firms, including sole traders and micro-businesses, amid fears they have been slipped through the net during the pandemic.
Chancellor Rishi Sunak announced the move after critics slammed the existing ‘business interruption loan’ scheme, which had seen government guarantee 80pc of sums lent to firms who successfully apply – but which have been slow to reach small and medium sized companies.
While that scheme will still exist, it will now be joined by a second one designed to provide financial lifelines to smaller enterprises quickly, with 100pc of the loan guaranteed.
Companies will be able to apply for loans ranging from a minimum of £2,000 up to 25pc of the company’s annual turnover, capped at £50,000.
For the first year the government will pay the interest and fees of the loan, meaning companies will not have to make any capital repayments for 12 months.
“Our smallest businesses are the backbone of our economy and play a vital role in their communities”, Mr Sunak said.
“This new rapid loan scheme will help ensure they get the finance they need quickly to help survive this crisis.
“This is in addition to business grants, tax deferrals, and the job retention scheme, which are already helping to support hundreds of thousands of small businesses.”
Firms will be able to access cash from 9am on Monday and will be required to fill out a two-page self-certification form online.
