More than £2 billion of Bounce Back Loans were approved on day one of the scheme, official figures have revealed.
According to HM Treasury, the new corporate finance facility for small businesses received over 130,000 applications within 24 hours of launching, with 69,000 of those already approved and ready to help businesses overcome Covid-19 disruption.
Under the scheme, small and medium-sized enterprises (SMEs) can borrow between £2,000 and up to 25 per cent of their turnover, up to a maximum £50,000. The Government will guarantee 100 per cent of the loan value, meaning business owners are not required to put down a personal guarantee.
Additionally, there are no repayments, fees, or interest due for the first 12 months, giving businesses a year to get back on their feet.
Do note that if your business previously used the Coronavirus Business Interruption Loan Scheme (CBILS) but is eligible for a Bounce Back Loan, you may apply to have your loan transferred to benefit from better terms.
Commenting on the success of the scheme, the Chancellor Rishi Sunak said the capital will help businesses recover from the pandemic, create jobs, and secure economic growth.
“These loans will help them bounce back from this crisis – getting money fast – so it’s great to see more than 69,000 business benefitting in just the first day. It’s vital this speedy progress continues in the days and weeks ahead,” he said.
The Bounce Back Loans scheme is just one part of the Government’s response to the Covid-19 crisis. The comprehensive financial package also includes £8 billion to pay the wages of furloughed staff at over 800,000 firms, and £8.6 billion in business grants to secure the future of nearly 700,000 business properties.
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