Small businesses will be able to borrow between £2,000 and £50,000 under a new 100% government backed loan scheme announced on Monday.
The loans will be interest free for the first year, and businesses will be able to apply online using a streamlined application process.
The new scheme is intended to complement existing measures to help small businesses affected by Covid 19.
Lenders will be provided with a 100% guarantee and the government will pay any fees and interest for the first 12 months; no capital repayments will be required during the interest free period. Applicants will not be expected to provide a personal guarantee against their home or car.
The scheme will be administered by a panel of accredited lenders; it will open on 4 May and the Chancellor also said that successful applicants will be able to access the cash "within days".
Small businesses who have accessed support under the other government support schemes will still be able to apply.
The announcement was welcomed by leaders from the FSB, CBI, IoD and BCC.
If you would like some assistance applying for a loan, contact us for help.