Wed. Nov 25th, 2020

Isle of Wight Observer News

The Island's Free Newspaper

New government loan scheme for small businesses

1 min read
The scheme allows businesses to borrow up to £50,000.

MP Bob Seely has welcomed a new 100 per cent government-backed loan scheme for small businesses announced by Chancellor, Rishi Sunak, yesterday (27 April).

The scheme – which allows businesses to borrow up to £50,000 – has been designed to ensure that small firms who need vital cash injections to keep operating can access finance in a matter of days.

The Government says not only will it provide lenders with a 100 per cent guarantee for the loan – and pay any fees and interest for the first 12 months – but no repayments will be due during the first 12 months.

The Chancellor 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.”

Bob said: “I thank the Chancellor for this new scheme, which I’m sure will be welcomed by many Island businesses. Support schemes like this will enable businesses to get back on track much more quickly. The more businesses we can help to bounce back from the effects of Covid-19, the more livelihoods we can save.

“I encourage all small business owners on the Island to consider how this scheme could help them to keep their business going through this challenging time.”

Businesses can apply through an online form available from Monday 4 May.