Please note: this article was correct at the time of writing and publication. However, please bear in mind that advice and guidance may change at short notice due to the nature of this unprecedented situation. We are doing our utmost to provide up to date information, as and when it happens.
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Applications for the governments micro-loan scheme are now open as of today (04.05.20).
Firms will now be able to access loans worth up to 25% of their turnover, with a maximum payment of £50,000, with the government paying the interest for the initial 12 months of borrowing, adding there will be no forward-looking eligibility. In contrast to the other coronavirus loans offered by the government, which are backed 80%, the ‘micro loans’ will be backed 100% by government.
In response to the announcement, the Confederation of British Industry said that the scheme “provides a lifeline to thousands of smaller firms with minimum checks and paperwork required. Sole traders, micro-businesses and entrepreneurs now have a simple route to fast finance, helping them stay afloat during this difficult time.”
Small businesses 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 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.
For more information regarding the micro-loan scheme, catch up on our webinar or call us on 0300 124 6866.
To discuss any of the above points or if you have any questions, please contact your NCASS Account Manager on 0300 124 6866 Monday -Thursday 9-5:30pm and Friday 9am – 5pm.