Bounce back loans launch for small business

A report has suggested that more than 69,000 bounce back loans for small businesses worth over £2bn have been approved during the first 24 hours of the scheme.

The bounce back loan scheme offering small businesses easy-to-access loans of up to £50,000 officially opened on 4 May, with the cash promised within days.

The seven largest lenders (Barclays, Danske, HSBC, Lloyds, RBS, Santander and Virgin Money) received more than 130,000 Bounce Back Loan Scheme applications on the first day of the scheme. 

Thousands of small firms and sole traders are eligible for 100% government-backed bounce back loans of between £2,000 and £50,000 to help them make it through the coronavirus outbreak.

Small business owners can apply to accredited lenders by filling out a simple online form, with just seven questions.

The government has also agreed with lenders that a flat rate of 2.5% interest will be charged on these loans.

The government will provide lenders with a 100% guarantee and cover the cost of any fees and interest for the borrower for the first 12 months. No repayments will be due during this period to enable firms to get back on their feet.

The loans are available through a network of lenders, including the five largest banks.