Small and medium-sized businesses (SMEs) affected by coronavirus can now apply for loans of up to £50,000.
The Chancellor, Rishi Sunak, announced the new ‘Bounce Back Loans’ scheme yesterday (27 April) which will help SMEs to borrow between £2,000 and £50,000.
The loans, which will be available from Monday 4 May, will be completely guaranteed by the government so there won’t be any fees or interest to pay for the first 12 months.
Loan terms will be up to 6 years and 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.