How will the UK’s ‘bounce back’ loans work?

Industry News | 04/05/20

From 9am on Monday 4 May, small businesses in the UK can apply for so-called “bounce back” loans of up to £50,000: a new form of government-backed credit that is meant to help companies through the coronavirus crisis. Final details of the government’s bounce back loan scheme were settled over the weekend between the Treasury and the banks that will provide the credit, and lenders expect to be flooded with applications this week. Chancellor Rishi Sunak’s latest rescue initiative for corporate Britain involves the government offering a 100 per cent guarantee on the bounce back loans to give banks the confidence to advance cash to businesses quickly. The move comes after strong criticism by companies of the government’s coronavirus business interruption loan scheme, aimed at small and medium-sized enterprises.

Source: Financial Times