The Government has introduced a new loan scheme that aims to save businesses across Derbyshire.
Small businesses will be able to access the new Bounce Back Loans scheme, which will provide loans of up to £50,000 to alleviate the pressure being put on businesses by the coronavirus crisis.
The loans will come with a 100% government-backed guarantee, allowing for banks to distribute loans quicker.
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, and comes alongside the £6 billion awarded in business grants, supporting 4 million jobs through the job retention scheme and generous tax deferrals supporting hundreds of thousands of firms.
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, standardised online application. The loan should reach businesses within days- providing immediate support to those that need it as easily as possible.
The loans have been welcomed by Amanda Solloway, the Member of Parliament for Derby North.
Commenting, Amanda said:
“The coronavirus crisis has put unprecedented strain on businesses as they experience a fall in footfall as people are, rightly, social distancing.
This loan scheme, with its 100% government guarantee, will save countless businesses both in my constituency of Derby North and the wider Derbyshire county.
To say that small businesses are the backbone of the economy is a cliché, but it’s a cliché for a reason – because it’s true.
We need to do all we can so that these businesses can survive and continue to play their part in our communities once this has passed.
This loan scheme is a huge, vital step in the right direction, and the Government has my full support.”