Banff and Buchan MP David Duguid has welcomed new ‘bounce-back’ loan scheme for small businesses announced by the UK Government this week.
Chancellor Rishi Sunak yesterday outlined the latest in a series of interventions by the UK Treasury to support the economy through the COVID-19 crisis.
The new loans will be 100% backed by the government, and businesses can borrow between £2,000 and £50,000. The cash will be available within days.
Loans will be interest-free for the first 12 months and businesses can apply online through a short and simple form.
Mr Duguid said
The UK Government has already taken unprecedented action to prop up our economy through this pandemic.
Billions of pounds have been set aside to cover loans and grants to businesses as well as a scheme paying 80% of the wages of millions of workers.
This latest finance scheme will provide government-backed loans of up to £50,000 for small businesses.
That will mean zero interest or payments for the first 12 months.
This could make a huge difference for many smaller businesses that will be struggling to survive through the necessary lockdown measures.
The loans are designed to be easy to apply for by filling out a simple application form, with cash reaching businesses within days. I would urge anyone who thinks they may be eligible to apply.
Rishi Sunak, Chancellor of the Exchequer, 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.
You can apply for the Government-backed ‘bounce back loan’ on the gov.uk website.