Sunak launches new micro-loan scheme to provide quick cash injections for small businesses

Mon, 27 Apr 2020 | BUSINESS NEWS



Chancellor Rishi Sunak has today announced a new micro-loan scheme for businesses that will issue loans worth up to 25 per cent of turnover, for as long as coronavirus measures remain in place.

The “Bounce Back” loans will be 100 per cent backed by the government and will be for a minimum of £2,000 and a limit of £50,000. The government will also pay the interest and any fees for the first 12 months, with no repayments being asked for during the first year, Sunak announced.

According to the government, the scheme, which will go live on Monday May 4, will be applied for through a “short and simple” online application form and will bolster existing support packages available to the smallest UK businesses affected by the pandemic.

It has been designed to ensure that such firms can quickly receive vital cash injections in order to keep operating amidst the crisis, with the intention being that loans should reach businesses within days of the application being submitted.

The announcement comes amid criticism of existing schemes, with some companies reporting that they are having difficulty accessing credit. Other schemes, such as the Coronavirus Business Interruption Loan Scheme (CBILS) have only been 80 per cent government-backed, leading to concerns that the 20 per cent risk banks are still being exposed to has made many hesitant to lend.

Announcing the scheme, Chancellor Rishi Sunak said: “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.”

“This is in addition to business grants, tax deferrals, and the job retention scheme, which are already helping to support hundreds of thousands of small businesses”.



Click here to read BSR's article on CBILS and how entrepreneurs can use the scheme to fund investments.

You can also read our piece on the government's announcement of the Coronavirus Large Business Interruption Loan Scheme (CLBILS) here.

You can view the latest businesses for sale here.


Share this article



Latest Businesses for Sale

British Rum Brand (Fast Sale)
UK Wide

Expressions of interest for the business and assets are required as soon as possible with offers and proof of funds by 5pm on 8th June 2020. International Award Winning British Rum Brand. An aborted fundraise caused by the onset of the Covid-19 lockd...

Asking Price: Offers Invited
Turnover: £300k - £1m

Satellite Communications & Networks Provider (Fast Sale)
South East, UK

Offers required by May 29, 2020 - 7:00pm. A remote communications specialist with over 30 years experience of delivering secure and reliable networks into hard to reach places and the world's harshest environments. Reason for sale: The Company is in...

Asking Price: Offers Invited
Turnover: £829,000

Independent Professional Services Company
UK Wide

Provides design and project support advice to clients requiring refrigeration and building services solutions. A respected refrigeration consultant for a number of leading retailers. Services offered include design, technical studies and project mana...

Asking Price: Offers Invited
Turnover: £1,000,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
24
 
May
 

Over 50 hotels and travel brands up for sale as leisure company collapses | ADMINISTRATION

The parent company of coach holiday company National Holiday...

 
22
 
May
 

Owner of Joe.co.uk enters administration | ADMINISTRATION

Joe Media Limited, the UK parent company of social news webs...

 
21
 
May
 

South London-based law firm acquired in pre-pack sale | BUSINESS SALE

Croydon-based McMillan Williams Solicitors (MSW) has been so...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
03
 
Apr
 

Chancellor bolsters CBILS for small firms and unveils new scheme for large companies | BUSINESS NEWS

Chancellor Rishi Sunak will today take new measures to suppo...

 
23
 
Oct
 

Subsea training centre enters administration | ADMINISTRATION

The Underwater Centre in Fort William, Scotland has fallen i...

 
20
 
Apr
 

Govt’s Green Investment Bank sold in £2.3bn deal | BUSINESS SALE

The government has sold its Green Investment Bank (GIB) to M...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources