Support for bounceback

Bondholder the Federation of Small Businesses (FSB) has responded to the launch of the Bounce Back Loan scheme.

Delivered through a network of accredited lenders, the scheme has already approved more than 69,000 applications worth ca. £2bn during its first 24 hours.

Aiming to help small and medium-sized businesses to borrow between £2,000 and £50,000, the government guarantees 100% of the new Bounce Back Loan, with no fees or interest to pay for the first 12 months.

Loan terms will be up to 6 years with no repayments due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.

Commenting on the Bounce Back Loan scheme, Federation of Small Businesses (FSB) National Chairman, Mike Cherry, said: “Many of the most vulnerable business owners – particularly sole traders – only have personal banks accounts and, as a result, are being told that they can’t access a bounce back loan. It’s vital that they are helped to secure the finance on which many will depend to make it through this incredibly challenging time.

He noted the importance of efforts to increase competition in the small business banking market being maintained: “All in all it’s a very promising start, but there’s still work to do.”

To find out more details about how you can apply for a Bounce Back Loan, please click here .