Small businesses in Redditch can now benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders.
The new Bounce Back Loans scheme, which will provide loans of up to £50,000, will help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.
From 9am this morning, small business owners can apply to accredited lenders by filling out a simple online form, with only seven questions.
This new scheme follows a raft of measures to support small businesses. A total of £9.1 million in grants have so far been handed out to small businesses in Redditch.
The Bounce Back Loans 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.
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 are 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.
“Our smallest businesses are the backbone of our town’s economy and play a vital role in our communities. This new rapid loan scheme will help ensure they get the finance they need quickly to help survive this crisis.
“This is in addition to business grants, tax deferrals, and the job retention scheme, which are already helping to support hundreds of small businesses in Redditch.”
The loans are available through a network of lenders, including the five largest banks.