100 per cent guaranteed loans to small firms welcomed by business chiefs

Business have complained about the ease of getting cash via the Government scheme

Business groups had raised concerns about slow access to existing coronavirus rescue schemes.

Mr Sunak told the House of Commons the scheme would start next week, offering firms loans up to £50,000 within days of applying.

It aims to unlock a backlog of credit checks by banks amid fears many small firms could fold before getting loans.

Roger Marsh, Chairman of the 11 Northern Powerhouse LEPs, said: “The Government’s micro-loan scheme is welcome news for the 537,000 sole and small traders across the North, many of which are in particular need of support at this critical time.

“This funding gap has been a major priority for the Northern Powerhouse 11 LEPs over the past few weeks and we welcome the fact that the Government is taking on board the messages from the wider business community to address such challenges in a proactive manner.

“On behalf of the region’s businesses, we will continue to collate and consolidate intelligence that helps identify the key pan-Northern and national issues that will be critical to a strong recovery.”

British Chambers of Commerce Director General Adam Marshall said: "The Chancellor has demonstrated he is listening to the concerns of our business communities and taking steps to get cash to the front line where it is needed.”

“This new route for our smallest companies to apply quickly and get a fast decision will be crucial to those who have struggled to get a CBILS loan."