The Government has launched their 100% backed Micro Loan scheme today worth up to £50,000 or 25% of turnover.
The minimum loan amount is £2,000 with a flat interest rate of 2.5% which can be borrowed over six years and the Government will pay the first 12 months’ interest. There is no need for Banks to undertake ‘forward-looking viability checks’ and they are also not allowed to ask for Personal Guarantees.
The simple and quick application process should pay out within 24-48 hours and all you will need to provide is your 2019 turnover and details of your business.
With CBILS having just over 25,000 loans worth over £4m being lent out in the first month of their introduction, this is a great measure for small businesses who have had trouble accessing cash to help them to continue trading throughout this uncertain period.
How to apply
You can find a full list of lenders on the British Business Bank website of those providing a ‘bounce back loan’, the easiest place to start is through your existing Bank that you hold your business account with as they will have all of your existing information.
What happens if I have already applied for a CBIL?
If the loan amount was for under £50,000 you can switch it over to a Micro Loan, just speak to your Bank to arrange this.
We welcome this much needed funding for small business.