Bounce Back Loans Could Be A Business Lifeline
Chris Hill, Partner at Thomas Westcott Chartered Accountants, explains how a new loans scheme could help some of our region’s small businesses at a challenging time.
They are often described as being the back bone of our economy, but many of the smallest businesses have been unable to access loans under the Coronavirus Business Interruption Loan Scheme.
To fill the void in support being made available to businesses during the pandemic, Coronavirus Bounce Back Loans was launched on 4th May. These loans of between £2,000 and £50,000 could make a real difference to many of our clients.
Small businesses that have been negatively affected by coronavirus will be able to access loans of up to 25 percent of their turnover. The Government will pay the interest for the first 12 months and no loan repayments will be required for the initial 12 months of the loan.
When he announced the loans, the Chancellor explained that banks will not need to perform any forward looking tests of businesses’ viability and that applicants would simply need to fill out a quick application form.
According to the latest figures, there are more than 24,000 small and medium sized enterprises (SMEs) here in the South West. We welcome this additional source of funding, which will provide a vital cash injection to some of these businesses.
The team at Thomas Westcott is here to support your business during these times.
