Chancellor Rishi Sunak announced a new micro-loan scheme called Bounce Back Loans, which offers loans of 25% of a business’s turnover, up to a maximum of £50,000, with the Government paying 100% of the interest for the first twelve months.
Sunak promised 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”, and said the loans should arrive within 24 hours of approval for most firms.
The scheme is due to open from 9am on 4 May 2020.
Measures have also been put in place to protect high street businesses against aggressive debt recovery actions. These include a temporary ban on the use of statutory demands made between 1 March 2020 and 30 June 2020, and on winding-up petitions presented from 27 April 2020 to 30 June 2020.