1/ Today, we're announcing a new loan scheme. A simple, quick, easy solution for those in need of smaller loans.
Businesses can apply for new Bounce Back Loans up to a maximum of £50,000, or 25% of turnover, with the government paying the interest for the first 12 months.
Businesses can apply for new Bounce Back Loans up to a maximum of £50,000, or 25% of turnover, with the government paying the interest for the first 12 months.
2/ We've been in close talks with the banks in recent days and these loans will be available from 9am next Monday.
There will be no forward-looking tests of business viability; no complex eligibility criteria; just a simple, quick, standard form for businesses to fill in.
There will be no forward-looking tests of business viability; no complex eligibility criteria; just a simple, quick, standard form for businesses to fill in.
3/ For most firms, loans should arrive within 24 hours of approval.
And I have decided, for this specific scheme, that the government will support lending by guaranteeing 100% of the loan.
And I have decided, for this specific scheme, that the government will support lending by guaranteeing 100% of the loan.
4/ We shouldn't ask taxpayers to bear all the risk of lending almost unlimited sums to businesses who may have very little prospect of paying those loans back – and not necessarily because of coronavirus.
So I don't think it's right to provide 100% guarantees on all our schemes
So I don't think it's right to provide 100% guarantees on all our schemes
5/ Instead, the new Bounce Back Loans carefully target that extraordinary level of state support at those who need it most.
And the £50,000 cap balances the risk to the taxpayer with the need to support our smallest businesses.
And the £50,000 cap balances the risk to the taxpayer with the need to support our smallest businesses.
