Coronavirus small business micro-loan scheme | from 4 May 2020

The Government has launched a (much needed) new small business micro-loan scheme.

Chancellor Rishi Sunak offers it as a “simple, quick, easy solution for those in need of smaller loans.”

Businesses can apply from lenders using a simple two-page standard form with *no forward-looking business viability tests or eligibility criteria.

According to the accompanying government press release, businesses can apply for a minimum of £2,000 up to a maximum of £50,000, or 25% of business turnover, with the government paying the interest for the first 12 months.

The scheme will open from 9am next Monday (4 May 2020), and according to the Chancellor most loans will be paid within 24 hours of approval.

Businesses will be able to access the loans through their existing bank.