New fast track government loans are being introduced for micro sized businesses to provide access to underwritten loans of up to 25% of turnover
In addition to the recent CIBLS (Coronavirus Business Interruption Loan Scheme) the Government has announced another loan scheme to get emergency credit into the hands of very small businesses.
The scheme is set to open from Monday 4 May at 9am and will be 100% guaranteed by the Treasury.
Here’s what we know now:
- Designed to provide financial help, quickly
- Businesses able to borrow up to 25% of turnover, from £2,000 to a maximum of £50,000
- Lenders will not require forward projections or business plans
- You will receive funds within days
- Loans will be interest free for the first 12 months
- No repayments are required in the first year
- Payback periods of up to 6 years are available
- The government will underwrite 100% of the loan
- You can apply online through a short and simple form
There are of course, some conditions…
- The business must be UK based
- It must have been negatively affected by Coronavirus
- It must not have been an “undertaking in difficulty” on 31 December 2019
- It must not already be claiming under the CBILS Loan Scheme
You can find out more here:
https://www.gov.uk/government/news/small-businesses-boosted-by-bounce-back-loans
As ever, if there is anything you wish to discuss with us in greater detail then please do not hesitate to contact us directly. As and when we are updated on further assistance available during this COVID-19 situation we will keep you informed.