Last night the Chancellor, Rishi Sunak, has announced government backed “bounce back loans” for smaller businesses, after recognising that some companies were struggling to get the previous government backed loans. All businesses will be able to apply for a loan worth up to 25 per cent of their annual turnover, subject to an upper limit of £50,000, with the government paying the interest for the first 12 months.
Applications should be greatly simplified with a short, simple, standard form and that banks would perform only “cursory” checks on applicants, he has indicated that, for most people, these loans will arrive within 24 hours of approval.
If you are struggling whilst waiting for your self-employed grant available in June, this could be a good bridge for you in the short term. The application will not require the rigorous checks of the previous govt backed loans, exactly what is involved we don’t know yet.
If you want to apply for one of these loans please contact your bank next week, and by all means feedback your experience to me.
I consider the government’s help in general is unprecedented, and far more than I could ever have imagined. Sadly, there is still little help for the ‘one man band’ limited company’s existing on dividends, they have been poorly provided for.
If any news is forthcoming I will keep you all posted.