Small Business Loans – Update 27 April
Britain’s smallest businesses will be offered 100% government-backed rescue loans after sharp criticism for the slow take-up of emergency bank lending during the coronavirus crisis.
In a climbdown following mounting pressure on the government to overhaul its emergency loan scheme after thousands of cash-starved firms were denied support, the chancellor, Rishi Sunak, said small firms would be offered new “bounce back loans” from next week with full government backing.
Sunak had said as recently as last week he was “not persuaded” by calls to provide a 100% state guarantee, despite less than half of all applicants for support securing an emergency loan.
Designed to provide smoother access to cash for small companies facing difficulty accessing existing government-backed lending, Sunak said businesses would be able to apply for “micro-loans” worth up to 25% of their turnover, up to £50,000.