The Chancellor has today announced further measures to support small businesses in response to concerns over the speed of accessing existing coronavirus support schemes.
“Many local businesses have contacted me requesting support during this crisis. Small businesses are vital to our local economy yet are also some of the most vulnerable to economic shock. The announcement today will be a welcome lifeline for many businesses needing the most urgent help.” – Dr Ben Spencer MP
The new scheme will enable small businesses to apply for a loan of up to 25% of the company’s turnover, capped at £50,000, which could be available within 24 hours of applying. The loans will also be 100% backed by the Government, who will also pay the interest for the first 12 months.
In a statement to the House of Commons the Chancellor, the Rt Hon Rishi Sunak, announced the new micro loan scheme to support businesses that were struggling to access credit. Banks have admitted delays in processing applications for the Coronavirus Business Interruption Loan Scheme, and a similar scheme for large businesses, due to the volume of demand, staff shortages and the need to conduct security checks. The existing schemes have to date released over £2.8bn of lending for UK businesses.
The new scheme will be live to take applications from next week.