Announced yesterday morning (Monday 4th May) thousands of small firms and sole traders – including high street staples like hairdressers, coffee shops and florists – will be eligible for 100% government-backed Bounce Back Loans to help them make it through the coronavirus outbreak. Small business owners can apply to accredited lenders by filling out a simple online form, with only seven questions. No repayments are due during the first year to enable firms to weather the pandemic.
The government has also agreed with lenders that an affordable flat rate of 2.5% interest will be charged on these loans. And any business that has already taken out a Coronavirus Business Interruption Loan of £50,000 or less can apply to have these switched over to this generous new scheme.
This morning banks had received more than 45,000 applications in a single day. Barclays received more than 200 applications in the first minute for the Bounce Back Loan scheme, which went live at 9am yesterday according to the BBC. HSBC has received 12,820 applications so far and NatWest has received 10,000 applications.
The loans will not require forward-looking eligibility tests, but just a “simple, quick, standard” application form for businesses. The chancellor said the loans should arrive within 24 hours of approval for most firms.
