On 27 April 2020, the Chancellor of the Exchequer, Rishi Sunak MP, announced a new coronavirus loan scheme – Bounce Back Loans. The Chancellor has said that for this scheme, the Government will support lending by guaranteeing 100% of the loan. The details are included below:
- Businesses can apply for new Bounce Back Loans worth up to 25% of turnover, up to a maximum of £50,000, with the Government paying the interest for the first 12 months.
- The loans will be available from banks from 9.00am on Monday 4 May 2020.
- There will be no-forward looking tests of business viability and no ‘complex eligibility criteria’.
- Businesses will have to complete a ‘simple, quick, standard form’.
- For most firms, loans should arrive within 24 hours of approval.