Government launches small business micro loan scheme

As part of the government's measures to mitigate the economic damage caused by the coronavirus (COVID-19) lockdown, Chancellor Rishi Sunak has announced a micro loan scheme for small businesses.

As part of the government's measures to mitigate the economic damage caused by the coronavirus (COVID-19) lockdown, Chancellor Rishi Sunak has announced a micro loan scheme for small businesses.

The Bounce Back Loan Scheme will allow small businesses adversely affected by COVID-19 to apply for up to £50,000, with the government guaranteeing 100% of the advance. Businesses can apply for a minimum of £2,000, up to a maximum of £50,000, or 25% of business turnover, with the government paying the interest for the first 12 months.

The scheme will open at 9am on 4 May and, according to the Chancellor, most loans will be paid within 24 hours of approval. Businesses will be able to access the loans through the existing network of accredited lenders.

The Chancellor said: 'I know that some small businesses are still struggling to access credit.

'They are, in many ways, the most exposed businesses to the impact of the coronavirus, and often find it harder to access credit in the first place.

'If we want to benefit from their dynamism and entrepreneurial spirit as we recover our economy, they will need extra support to get through the crisis.

'Some businesses will not want to take on more debt, which is why our focus has been on cash grants, tax cuts and tax deferrals. But for others, loans will be part of the answer.'

Lockdown grants welcome but more support needed, say business groups Second round of grants for the self-employed opens ICAEW warns taxpayers have 90 days to notify HMRC of overclaimed COVID-19 grants Ensure interaction between VAT and Eat Out to Help Out is understood, ICAEW urges FSB calls for further help for employers as furlough wind-down begins More firms to benefit from CBILS following changes to loan rules Mixed picture for retail sector, CBI finds Public warned to watch out for top coronavirus scams NIESR calls for furlough scheme to be kept open Committee suggests many have 'fallen through gaps in support schemes' Fifth of small firms expect poor performance in next three months, data suggests UK economy 'still stuck in first gear' FRC urges companies to provide high-quality disclosures on impact of coronavirus Claims deadline approaching for first phase of furlough scheme Lockdown has 'negatively impacted young people's labour market outcomes' Business groups cautious on easing of lockdown restrictions Coronavirus borrowing now over £46 billion Homeworking creates new opportunities for cyber criminals, research finds Welsh government to reduce LTT rate Scottish government to reduce LBTT rate Recovery advice scheme launched for small businesses HMRC scraps benefit-in-kind charge on coronavirus tests Business groups react to Summer Economic Update Chancellor announces Job Retention Bonus in Summer Economic Update Chancellor to deliver Summer Economic Update VAT cut on PPE extended Private sector off-payroll reforms given go ahead for April 2021 LITRG urges self-employed to check eligibility for SEISS FSB finds late payment crisis has worsened during coronavirus lockdown Furlough scheme now covering 9.3 million workers Business warned about rise in impersonation fraud Job retention scheme closing to new entrants Overseas VAT claims subject to COVID delays IoD urges government to support jobs and investment after coronavirus lockdown Government-backed coronavirus lending now over £40 billion Government urged to consider emergency VAT reduction UK public calls for greater transparency on tax avoidance and evasion Businesses urged to reinstate VAT direct debits HMRC updates CJRS guidance for employers HMRC updates guidance for self-employed coronavirus scheme MPs call for VAT reduction to help firms affected by coronavirus LITRG warns self-employed that SEISS is taxable Government extends furlough scheme for parents on statutory leave £35 billion loaned to businesses through coronavirus schemes Business debt 'will slow economic recovery' from coronavirus pandemic, IoD warns Deadline looming for new entrants to Coronavirus Job Retention Scheme HMRC delays VAT reverse charge on construction services One in five highly skilled freelancers face business closure to COVID-19 Strong economic recovery likely, but not certain Over £31 billion borrowed through coronavirus schemes Manufacturers call for coronavirus support Chancellor announces changes to Job Retention Scheme IPSE gives cautious welcome to extension of self-employed scheme Research shows 5.2 million people have fallen victim to scams during coronavirus crisis Coronavirus Statutory Sick Pay Rebate Scheme goes live Government publishes revised Coronavirus Job Retention Scheme legislation Survey suggests one in ten firms cannot implement coronavirus guidance safely IPSE urges government to extend self-employed support scheme Future Fund launches to give start-ups coronavirus support Government set to launch Coronavirus Statutory Sick Pay Rebate Scheme Loan size increased to £200 million under large business interruption scheme BCC survey suggests firms ready for gradual reopening of UK economy One million apply to self-employed grant scheme in 48 hours Close to £15 billion lent through government's coronavirus schemes Chancellor extends Job Retention Scheme until October Self-employed grant scheme to open to applications HMRC extends tax appeal deadline due to pandemic Business groups need more guidance and financial support for return to work UK Finance warns firms over Bounce Back loan repayments HMRC publishes guidance on claiming Job Retention Bonus HMRC begins contacting individuals eligible for coronavirus income support scheme Over 110,000 businesses apply for Bounce Back loans on day one Government changes ISA rules to help individuals affected by coronavirus Business leaders eager for lockdown to ease, says IoD Lenders relax evidence requirements for business interruption loan scheme applications CIPD urges government to make Coronavirus Job Retention Scheme more flexible Government launches small business micro loan scheme FSB urges government to increase 80% guarantee on coronavirus business loans Government launches support finder tool for businesses SMEs access £2.8 billion through business interruption loan scheme BCC finds significant number of UK businesses have furloughed employees Coronavirus pandemic 'has already cost SMEs £277,000 each', research suggests Government unveils support package for innovative businesses affected by coronavirus Coronavirus Job Retention Scheme goes live as it is extended to end of June Pensions regulator issues auto-enrolment guidance for pandemic Government widens eligibility for job retention scheme HMRC releases guidance on coronavirus Self-employment Income Support Scheme Coronavirus Job Retention Scheme set to launch on 20 April Chancellor announces financial aid package for charities Firms struggling to access emergency coronavirus loans UK economic output reduces to 31% as result of coronavirus lockdown Chancellor announces changes to Business Interruption Loan Scheme Majority of UK firms have less than three months' cash reserves Government publishes details on coronavirus grant schemes for small businesses Directors on PAYE can furlough under job retention scheme Government relaxes insolvency rules during coronavirus pandemic Bank of England announces £100 billion stimulus package for UK economy HMRC publishes guidance on recognising genuine government contact HMRC urges businesses using VAT deferral to cancel direct debits Chancellor unveils help for self-employed workers Government and financial regulators tell banks to keep lending UK facing 'worst recession in modern history' COVID-19 Business Measures - job retention and tax deferrals Coronavirus Business Interruption Loan Scheme goes live Information for businesses and employers
Copyright

© 2020 A.M. Accountants Limited. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Contact Us

Please call:
020 8348 3378

Quick links

Home | Contact us | Site map | Accessibility | Disclaimer | Help |

Address
A.M. Accountants Limited, 63 Highgate High Street, Highgate, London N6 5JX

Registered as auditors and regulated for a range of investment business activities in the United Kingdom by the Association of Chartered Certified Accountants.
A.M. Accountants Limited, Company number 04251430, Registered in England and Wales, Registered office address 63 Highgate High Street, Highgate, London N6 5JX