Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders, the Chancellor announced (Monday 27 April).
The scheme will launch for applications on Monday 4 May. Firms will be able to access these loans through a network of accredited lenders.
- businesses will be able to borrow between £2,000 and £50,000 and will be able to access the cash within days. The loan value will be worked out on 25% of the business turnover.
- loans will be interest free for the first 12 months, and businesses can apply online through a short and simple form. No repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan. The loan period will be up to six years.
- the new scheme will run alongside the existing Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS). If you have already applied for these and wish to transfer to the new scheme you can do so.
Full details can be found using the following links:
https://www.gov.uk/government/news/small-businesses-boosted-by-bounce-back-loans
https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
If you require any further information regarding funding, please contact
Alison Clark
Covid-19 Response Coordinator
Tiree Community Development Trust
T: 07741 489 959
