The Chancellor has announced the creation of Bounce Back Loans, for small businesses in need of loans of up to 50,000.
He acknowledged that some small businesses are still struggling to access credit, and announced that the Treasury will launch a new micro loan scheme which will provide "a simple, quick, easy solution for those in need of smaller loans."
Businesses can apply for up to 25% of their annual turnover, up to £50,000. Government will cover the interest for the first 12 months and will guarantee 100% of the loan. From the Chancellor’s comments today, it seems unlikely that this guarantee will be extended to larger sums.
There are no tests of business viability, nor complex eligibility criteria. According to the Treasury, it will be a single page standard form for businesses to fill in.
The loans will be available from 9AM Monday 4 May. For most firms, loans should arrive within 24 hours.
Four new banks have also been added to the CBILS schemes. This brings the number of accredited lenders to 52. The full list can be found here.