By Alex Trelinski • 27 April 2020 • 17:30
THE UK government has announced that it will underwrite interest-free loans to the country’s coronavirus-hit small business.
In a dramatic move, the loans will be obtained by just filling in a form with no projections required as to the future viability of the business that wants help.
The money should be transferred within 24 hours of most cases putting in a submission.
Chancellor of the Exchequer Rishi Sunak said today (April 27) that there would be a cap of of 25 per cent of turnover or £50,000 on money handed out, which “balances the risk to the taxpayer with the need to support our smallest businesses.”
It’s not a grant but a loan but the government is guaranteeing paying the interest for the first 12 months of the sum obtained.
Sunak said: “We’ve been in close talks with the banks in recent days and these loans will be available from 9am next Monday. There will be no forward-looking tests of business viability; no complex eligibility criteria; just a simple, quick, standard form for businesses to fill in.”
“The government will support the lending by guaranteeing 100 per cent of the loan,” he added.
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