Earlier this week, Rishi Sunak unveiled the latest measure in the government's business relief package: bounce back loans. But what are these jauntily named loans and how do you qualify?
Unlike the government's more unusual support measures, the bounce back loans are ordinary business micro-loans. The most notable aspect is that the government are backing the loans 100%.
Here are the details:
The 100% guarantee is an increase on the previous 80% guarantee in the CBILs loan package. That guarantee means that if the business fails, the government will pay the loan back in their place. This means there's basically zero risk for the banks so they'll be more willing to lend.
The loans will be distributed through the same banks and lenders accredited for the earlier CBILs package. The government promises a quick and easy application process and the scheme is set to launch on 4th May.
At zero cost for the first year and with a full government guarantee, these micro-loans are likely to be a welcome step for many small businesses. However, £50,000 per business is a relatively small cap so many businesses will want and need extra capital to grow. For those that do, we're primed to deliver up to £1m in growth capital in days.