Businesses can apply for new Bounce Back Loans up to a maximum of £50,000, or 25% of turnover, with the government paying the interest for the first 12 months.
The Chancellor Rishi Sunak made the announcement in the House of Commons this afternoon.
There will be no forward-looking tests of business viability; no complex eligibility criteria,just a simple, quick, standard form for businesses to fill in.
For most firms, loans should arrive within 24 hours of approval, the Chancellor said which the government will support lending by guaranteeing 100% of the loan.
Mr Sunak told the Commons he “remain unconvinced by the case” for rolling that out to all loans.
He said it was not fair to put the responsibility for that onto the taxpayer when it may apply to “businesses who may in some cases have very little prospect of paying that back”.
