Small businesses in Wales will benefit from a new fast-track finance scheme providing loans with a 100% UK Government-backed guarantee for lenders, the Chancellor announced.
Rishi Sunak said the new Bounce Back Loans scheme, which will provide loans of up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.
The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days, and comes alongside the £6 billion awarded in business grants, supporting 4 million jobs through the job retention scheme and generous tax deferrals supporting hundreds of thousands of firms.
The UK Government, which has been consulting extensively with business representatives about the design of the new scheme, will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.
The loans will be easy to apply for through a short, standardised online application. These should reach businesses within days- providing immediate support to those that need it as easily as possible.
The Chancellor of the Exchequer, Rishi Sunak, said:
“Our smallest businesses are the backbone of our economy and play a vital role in their communities. This new rapid loan scheme will help ensure they get the finance they need quickly to help survive this crisis.
“This is in addition to business grants, tax deferrals, and the job retention scheme, which are already helping to support hundreds of thousands of small businesses.”
Angela Burns Assembly Member for Carmarthen West & South Pembrokeshire said
“This is welcome news for many of the small business owners who have been in contact with me over these past few weeks. To be able to access loans supported by the UK Government up to £50,000 will make all the difference to any number of companies.
And the application is easy, not masses of forms and endless projections, this should simplify the process of accessing business support and I am also pleased to see that the first 12 months of the loan are interest free”.