The Government has announced the launch of its Bounce Back loan programme of coronavirus business support, with sole traders and small firms set to benefit from loans worth a maximum of £50,000.
All manner of sole trader firms and SMEs whose business operations have been shut down by the virus will be able to apply for one of these loans, ranging from florists to hairdressers. The Government is stating that the process of applying for the Bounce Back Loans will be very straightforward, with owners of these types of companies simply needing to fill out a form online that contains seven questions to get a loan from an accredited source.
Those companies that took out one of the Coronavirus Business Interruption Loans earlier on in the lockdown will be given the choice of transferring that over to the new loan scheme that comes with a flat 2.5% interest rate. An accountant for sole traders in South Yorkshire, or wherever they happen to be based, will be able to advise them about this.
Speaking to Gov.uk on the launch of these loans, Alok Sharma, the Business Secretary, said:
“We are backing small businesses, which are the backbone of our communities, with the support they need to stay afloat.”
Chancellor Rishi Sunak added that these companies and traders would be vital in helping the economy grow again in the wake of the virus pandemic and the lockdown, making support for them an essential measure.
The loans range in size from £2,000 to £50,000.