A new microloan scheme announced today, Monday, will give startups and small firms access to loans entirely backed by the UK government.
Chancellor Rishi Sunak stated that scheme would start next week with businesses needing to fill in a two-page self-certification form online.
“I know that some small businesses are still struggling to access credit,” Sunak told the House of Commons.
“They are, in many ways the most exposed businesses to the impact of the coronavirus. If we want to benefit from their dynamism and entrepreneurial spirit as we recover our economy, they will need extra support to get through this crisis.”
Successful applicants will not need to repay capital or interest for 12 months with the government paying the interest in the first year.
Describing the new support as a “microloan scheme”, Sunak explained that access to loans should now be much faster as the government was underwriting the loans. Further details of the loans are to be announced.
The new ‘bounceback loans’ announced this afternoon sound in principle to be a good opportunity for viable early stage businesses to access the government funding support. We are still awaiting details around eligibility and viability which will become known over the coming days. Ultimately this capital support means there will be more businesses saved, more jobs saved and a stronger economy post Covid-19.
Benjamin Storey, Funding Solutions Lead for Eagle Labs