To say that Banks generally have been slow to help the most needed business’s is an understatement to say the least. However, the government have stepped in to make it easily accessible and quick.
· businesses will be able to borrow between £2,000 and £50,000 and access the cash within days
· loans will be interest free for the first 12 months, and businesses can apply online through a short and simple form
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.
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, standardized online application. The loan should reach businesses within days-providing immediate support to those that need it as easily as possible.
The scheme will launch for applications on Monday 4 May. Firms will be able to access these loans through a network of accredited lenders.