The government in the UK has already introduced a range of measures to help businesses of all sizes survive the Covid-19 pandemic and now chancellor Rishi Sunak has announced that the government will provide what it’s calling ‘Bounce Back’ loans for small businesses.
This financial support will have a 100 per cent government guarantee and the government will pay any fees or interest on the loan for the first 12 months. Businesses that are awarded a loan won’t have to repay anything for the first 12 months either.
Small businesses can apply for the financial support from 4 May. They will be able to borrow up to 25 per cent of their turnover, to a maximum value of £50,000.
Commenting on the measure, Mr Sunak stated: “Our smallest businesses are the backbone of our economy and play a vital role in their communities. This new rapid loan scheme will help ensure they get the finance they need quickly to help survive this crisis.”
National chairman of the Federation of Small Businesses Mike Cherry was among the business leaders to welcome the initiative, saying that it will help save millions of jobs.
Research published by the British Chambers of Commerce (BCC) exploring the impact of the Covid-19 pandemic found that over half (57 per cent) of businesses don’t intend to apply for any finance, however.
The BCC survey also found that just 13 per cent of the businesses that have already applied for one of the Coronavirus business interruption loans previously announced by the government have been successful in receiving finance. The majority are still waiting for a decision or have been unsuccessful.
If you’re looking for help with bookkeeping in Maidenhead, get in touch with us to find out how we can support your small business.