MP welcomes microbusiness loans of up to £50,000

WARRINGTON South MP Andy Carter has welcomed microbusiness loans of up to £50,000 so small businesses across Warrington can benefit from a new fast-track finance scheme, providing loans with a 100% government-backed guarantee for lenders.

Chancellor Rishi Sunak said the new Bounce Back Loans scheme would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.
The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days, and comes alongside the £6 billion awarded in business grants, supporting 4 million jobs through the job retention scheme and generous tax deferrals supporting hundreds of thousands of firms.
The government, which has been consulting extensively with business representatives about the design of the new scheme, will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.
The loans will be easy to apply for through a short, standardised online application. The loan should reach businesses within days- providing immediate support to those that need it as easily as possible.
Mr Carter said: “I’m pleased that the Government has put this scheme into place after weeks of lobbying which will help small businesses here in Warrington. Previously to entering Parliament I was a small business owner myself, and I know the difficulties that surround getting loans of this type.
“Small businesses are vital in ensuring our communities thrive and will be crucial in creating jobs and securing economic growth as we recover.
“Crucially there are no forward-looking viability tests which should mean loans are much easier to access. The scheme will be available from banks from Monday at 9am.”

The Chancellor of the Exchequer, Rishi Sunak, said:“Our smallest businesses are the backbone of our economy and play a vital role in their communities. This new rapid loan scheme will help ensure they get the finance they need quickly to help survive this crisis.
“This is in addition to business grants, tax deferrals, and the job retention scheme, which are already helping to support hundreds of thousands of small businesses.”
The scheme will launch for applications on Monday 4 May. Firms will be able to access these loans through a network of accredited lenders.
The government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan.
The Government’s Covid-19 support schemes have provided over £15 billion for business in just a few weeks and have put in place:
*A job retention scheme – more than 500,000 claims have been made to the value of £4.5 billion
*business grants – half a million business properties have benefitted from £6 billion of business grants
*the Coronavirus Business Interruption Loan Scheme – with over 20,000 loans
*the Covid Corporate Financing Facility, which has provided over £14 billion for larger firms
*generous VAT deferrals worth billions of pounds
*scrapped businesses rates
*covering the cost of statutory sick pay

The new scheme will run alongside the existing Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The Government is also taking additional steps on the Coronavirus Business Interruption Loan Scheme (CBILS) to ensure that lenders have the confidence they need to process finance applications quickly, including removing the per lender portfolio cap for the government guarantee, and changing the viability tests that so that all banks will need to assess is whether a business was viable pre COVID-19.