An important intervention from the Chancellor as he seeks to ensure that more small businesses are able to access the finance they need.
We all recognise that there are gaps in the support that's available, but Government is genuinely doing everything it can to try and help as many people as possible!
These loans targeted at very small businesses will be available from Monday at 9am. They are for up to £50k and 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.
And The Chancellor has decided, for this specific scheme, that the government will support lending by guaranteeing 100% of the loan.
We shouldn't ask taxpayers to bear all the risk of lending almost unlimited sums to businesses who may have very little prospect of paying those loans back – and not necessarily because of coronavirus.
So the government doesn’t think it's right to provide 100% guarantees on all our schemes.
Instead, the new Bounce Back Loans carefully target that extraordinary level of state support at those who need it most.
And the £50,000 cap balances the risk to the taxpayer with the need to support our smallest businesses.