More than one million small and medium-sized enterprises (SMEs) have now taken out Bounce Back loans. The news underlines the popularity of this element of the government’s Covid-19 support for businesses. SMEs that have yet to borrow should consider doing so.
The scheme offers loans of up to £50,000 to any business that has suffered some form of detrimental impact during the pandemic. In practice, that is likely to be almost every business. The loans are available from 11 private sector banks, with the government guaranteeing the debt if borrowers default, and carry an interest rate of just 2.5% a year. A firm pays no interest or charges in the first 12 months.
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