After huge pressure from small business owners, today, the Chancellor unveiled the Bounce Back Loan Scheme offering 100% Government backed small business loans with no personal guarantee requirements from directors.
How does this differ from CBILS (Coronavirus Business Interuption Loan Scheme)?
CBILS loans have already come under heavy criticism for their complicated application process, approval rates and the potential for the need for a personal guarantee. Bounce Back Loans address these issues and will be 100% guaranteed by central government with no PG requirements.
Applications will be simple with an online questionnaire and will need no complex business plan or forecasts, aiming to get money into small businesses as quickly as possible. What's more is there will be no credit checks and a 12 month repayment holiday as the government will cover the first 12 months of interest.
How will this help small business? #watchthisspace