A new 100% government-backed loans scheme for small businesses affected by coronavirus has been unveiled, the Chancellor has announced.
• Rishi Sunak unveiled the finer details of the Bounce Back Loans scheme ahead of its launch on Monday
• businesses will be able to borrow between £2,000 and £50,000
• loans will be interest free for the first 12 months
• firms will be able to apply online via a short, standardised form
Outlining further details of the Bounce Back Loans scheme ahead of its launch on Monday, Rishi Sunak said the scheme aimed at the UK's smallest firms will offer loans of between £2,000 and £50,000.
Businesses will be able to borrow up to the value of 25% of its turnover up to a maximum of £50,000.
The Government will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.
Businesses can apply online through a short, standardised form when the scheme opens for applications at 9am on Monday, May 4. Firms will be able to access these loans through a network of accredited lenders.
Read the full government announcement here.