Small firms and sole traders across the Isle of Wight – including high street staples like hairdressers, coffee shops and florists – are eligible for 100% government-backed Bounce Back Loans to help them make it through the coronavirus outbreak.
From this morning (Monday), small business owners can apply to accredited lenders by filling out a simple online form, with only 7 questions.
The government has also agreed with lenders that an affordable flat rate of 2.5% interest will be charged on these loans. And any business that has already taken out a Coronavirus Business Interruption Loan of £50,000 or less can apply to have these switched over to this generous new scheme.
The Bounce Back Loan scheme is the latest step in a package of world-leading support measures launched by Chancellor Rishi Sunak – with £7.5 billion already awarded in business grants, 4 million jobs supported through the job retention scheme and generous tax deferrals supporting hundreds of thousands of firms.
The Chancellor of the Exchequer, Rishi Sunak, said:
“Small businesses will play a key role creating jobs and securing economic growth as we recover from the Coronavirus pandemic.
“The Bounce Back loan scheme will make sure they get the finance they need – helping them bounce back and protect jobs”.
Business Secretary Alok Sharma said:
“We are backing small businesses, which are the backbone of our communities, with the support they need to stay afloat”.
“This new scheme of 100% government-guaranteed loans gives owners of even the smallest businesses the confidence and flexibility to borrow a sum which works for them. This will help ensure they can continue to trade, and be a key part of our efforts to reboot the British economy.
As part of the scheme, small businesses can borrow between £2,000 and £50,000. 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 5 largest banks.
Mike Cherry, National Chair of the Federation of Small Businesses, said:
“We know many small firms have struggled to secure small loans speedily. We are pleased that the Chancellor has listened, and swiftly developed this new scheme for small businesses to access finance quickly, interest-free for the first year and at an affordable fixed interest rate for the remainder.”
Government support for business of all sizes:
| Firm Size | Turnover < £45m | Turnover > £45m | Investment grade |
| Bounce Back Loans (up to £50,000) | X | X | X |
| Coronavirus Business Interruption Loan Scheme (CBILS) | X | ||
| Coronavirus Large Business Interruption Loan Scheme (CLBILS) | X | X | |
| Covid Corporate Financing Facility (CCFF) | X | ||
| Job Retention Scheme | X | X | X |
| Business Grants (dependent on rateable value of the property) | X | X | X |
| VAT deferrals | X | X | X |
| Covering the cost of statutory sick pay | X | X | X |
| Future Fund (only if VC funded) | X | X |
Unbelievable that the UK Government is helping out such businesses as hair dressers, many of the self employed ones take cash, declare little of it, nor their tips and thus pay in a fraction of the tax they should and are now eligible for help from those they have short changed for years.
Their main expense a pot of barbercide and some new scissors once a year, and the occasional broom will not need £50k.
Many will never pay this back, but millions of us FULL honest taxpayers will.
Their bank accounts for cash payments and those of their partners over the last decade ought to be heavily scrutinised by the authorities before any loans or tax payers funded grants are forthcoming for all the self employed small businesses.
It is OUR money at risk, NOT HMG’s and it will be US paying it back not HMG.
To ease your concerns I believe they do check past payment records, but not the applicants partners, or families where cash may well have been laundered through. Hardly Al Capone times, YET.
Maybe you should concentrate on your own circumstances before making silly comments about others
“many of the self employed ones take cash, declare little of it, nor their tips” How many? where are your research figures?
tit
Hahaha you bitter little man!
You should check the noughts, 50,0000?, in your headlines
You could take the offer and buy new van ,tools etc etc cheaper rate than the banks normally ,but don’t think that’s the idea of this scheme so don’t be silly bout it