(1 Minute Read)
Plans for a new loan scheme for small businesses up to £10m…
What is it?
A new taxpayer-funded loan scheme is being drawn up by the Treasury. The new scheme will be aimed at increasing small business lending to help recovery from the pandemic.
The new scheme is set to replace the current Bounce Back Loan Scheme and Business Interruption Loan Scheme which are due to close to applications at the end of March 2021.
The scheme will provide a permanent guarantee to give lenders the confidence they need to lend money, allowing businesses to invest in their future.
The borrower will still have to demonstrate that they are viable and unable to obtain normal lending.
Find out how we can help you save money!
How much are these loans for?
Currently the new scheme is still being finalised, but the new loans could guarantee as much as 80 percent to cover the lenders’ liability on the loans, up to £10 million.
It has been reported that banks will be allowed to charge interest on these loans, but that is likely to be capped at 15%
Kind regards Ilyas