The Chancellor has today announced a micro loan scheme, providing simple, quick and easy solution for those in need of smaller loans. Businesses will be able to apply for these new Bounce Back Loans for up to 25% of their turnover, up to a maximum of £50,000, with the government paying the interest for the first twelve months. These loans will be available from 9am next Monday.
There will be no tests of business viability or complex eligibility criteria. It will be a simple, quick, standard form for businesses to fill in. For most businesses, loans should arrive within 24 hours of approval. The Government will support lending by guaranteeing the lender 100% of the loan.
These new Bounce Back Loans carefully target the extraordinary level of state support at those who need it most. I welcome this additional support for businesses to help keep them going and ultimately help people to stay in work.