Cherilyn Mackrory, Member of Parliament for Truro and Falmouth, has welcomed the announcement by the Chancellor Rishi Sunak today of a new Bounce Back Loan scheme to support small businesses during the COVID-19 pandemic.
Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders, the Chancellor announced today (Monday 27 April).
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 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. The loan should reach businesses within days- providing immediate support to those that need it as easily as possible.
Cherilyn said:
“There are many small businesses in Truro and Falmouth that will benefit from the Bounce Back loan scheme.”
“Along with colleagues across Cornwall I have been working hard to ensure feedback from local businesses is received in the Government and I am pleased to see them listen and come forward with another measure to help support small businesses at this difficult time.”
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.”
The scheme will launch at 9am on Monday 4 May.
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