Garages eligible for £50,000 ‘bounce back loans’ under new government scheme

100 per cent guarantees aim to get credit flowing to businesses affected by Covid-19

Garages eligible for £50,000 ‘bounce back loans’ under new government scheme
Image: Bigstock.

Garage business are to get access to 100 per cent taxpayer-backed loans after concerns were raise about slow access to existing coronavirus rescue schemes.

Chancellor Rishi Sunak told the House of Commons that 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.

Companies will be able to apply for the ‘bounce back loans’, free of interest for the first 12 months, up to the value of 25 per cent of their turnover, with a cap of £50,000.

Related: Urgent calls to end inconsistencies in business rate relief

The loans, which will be available from 9am on Monday 4 May, will not be subject to business liability tests or complex eligibility criteria, Sunak said.

Business owners will need to fill in a two-page self-certification form online.

Rishi Sunak said: “These new bounce back loans carefully target that extraordinary level of state support at those who need it most.

“And the £50,000 balances the risk to the taxpayer with the need to support our smallest businesses.”

Will your business benefit from these ‘bounce back loans’? Share your comments below.

Home Page Forums Garages eligible for £50,000 ‘bounce back loans’ under new government scheme

Viewing 4 posts - 1 through 4 (of 4 total)
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  • #194805 Reply
    Lewis Jones
    Guest

    Does the chancellor say what the interest will be when repayment is due, and who will set that rate

    #194807 Reply
    David Dawson
    Guest

    Call me a cynic, but there is no mention of interest rate or other terms. i suspect it wont be any easier to access than a conventional business loan

    #194983 Reply
    Rob Waycott
    Guest

    It would be better if Mr Sunak made sure that everyone got the £10,000 or £25,000 grant first, and sorted out the discriminatory system currently applied, before offering loans, even interest free for a short period.
    Because my workshop receives a separate rates bill from my forecourt, we are classed as having more than one site, even though it is all within one ring fence, (and is one business with one set of accounts), therefore we are prevented from applying for either grant.
    At the same time, Tescos does get business rates relief, while also giving it’s shareholders a dividend.
    I believe they have more than one site….?
    Additionally, tescos has benefitted from a boost in trade, while MOT station’s customers have been actively encouraged to stay away. Our trade bodies need to take some action…..

    #195263 Reply
    Matthew B
    Guest

    I got my loan and it was so easy to do. I applied on the 4 May and I received it into my bank the very next day. 0% interest for twelve months, no repayments for 12 months then only 2.5% interest for 5 years

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