New 100% government-backed loan scheme for small business
Small businesses will benefit next week from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders, the Chancellor announced yesterday.
Rishi Sunak said the new Bounce Back Loans scheme, which will provide loans of up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.
The loan scheme, which will open for online applications from 9am next Monday, 4 May, apparently has just two pages of forms to complete, is not based on business viability and the business owner can ‘self-certify’ their income (no evidence is being asked for submission) and most importantly, the Government is underwriting 100% of the loan. A business can borrow up to 25% of their turnover, up to a maximum of £50,000.The loan should reach businesses within days, providing immediate support to those that need it as easily as possible.
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. The government will pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.
Boosting the digital skills of furloughed workers
Another big announcement yesterday was about the new Skills Toolkit launched by Government, providing free online skills training for furloughed workers. In particular, the scheme is promoting increased digital skills. Digital skills can be anything from using social media and staying safe online to coding, programming or digital marketing.
The Skills Toolkit
is made up of free online courses, tools and resources, organised at beginner, intermediate and advanced levels.
Remember too that the GAI can offer education and CPD resources specifically geared to our industry
- take a look at what is on offer