MP welcomes small business loans

South Ribble MP Katherine Fletcher has welcomed the Government’s new fast-track “Bounce Back” loans of up to £50,000 to aid small businesses affected by the Coronavirus pandemic.
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Predicting it will help many local small businesses in Leyland and South Ribble she said: “Previously to entering Parliament I was a small business owner myself, and I know the difficulties of getting loans of this type.”

She continued: “I’m pleased that the Government has put this scheme in to place after weeks of lobbying ... Crucially there are no forward-looking viability tests which should mean loans are much easier to access. The scheme will be available from banks from Monday at 9am.”

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The MP added: “Small businesses are vital in ensuring our communities thrive and will be crucial in creating jobs and securing economic growth as we recover."

The scheme is designed to help small firms needing cash injections to keep operating and enable them to get loans within day, with a Government backed guarantee to the lender.

There will be a standardised online application form, no repayments will be due during the first 12 months and the Government will pay any fees and interest for the first 12 months.

Chancellor of the Exchequer Rishi Sunak said after announcing the new scheme: "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."

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The loans will be available through a network of accredited lenders and he pledged Government will work with lenders to agree a low standardised level of interest for the remaining period of the loan.