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.
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.”
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