Chancellor at the time, Rishi Sunak, had announced a new Bounce Back loan scheme, allowing small businesses to apply for a loan of up to £50,000, with the government guaranteeing 100% of the advance.
Small businesses could apply for a minimum of £2,000 up to a maximum of £50,000 – or 25% of business turnover, with no capital or interest payments due for a year.
This was welcomed news for small businesses who needed a quick financial solution during the crisis. To apply for this loan scheme, businesses needed to approach their bank where they had to complete a simple two page form online. The bank didn’t require any business viability tests or eligibility criteria.
The scheme opened at 9am on Monday, 4 May 2020, with the bulk of loans being paid within 24 hours of approval.
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