South Scotland MSP Brian Whittle has welcomed the launch of the UK Government’s latest support programme to deliver loans to small and medium sized businesses.
The Bounce Back loan scheme helps businesses borrow between £2000 and £50,000 to deal with the impact of coronavirus and is designed to be processed and awarded faster than the Coronavirus Business Interruption Loan Scheme. The government has guaranteed the loans for lenders, reducing the risk and encouraging them to lend. The loans can last up to six years with fees and interest for the first year being covered by the UK Government and borrowers being charged a flat rate of 2.5% after that.
In its first few days of operation, the scheme has already handed out billions of pounds worth of loans to businesses across the UK as thousands of smaller businesses take up the scheme.
Brian Whittle MSP said:
“The bounce back loans will offer a vital lifeline to many small businesses who have been struggling to deal with the impact of coronavirus.
While it might not be the answer for everyone and some businesses will be wary of taking on debt, I’d encourage small and medium sized business owners to look at the details and see if this is the right thing for them.
Proper support for business is vital if we want our economy to recover as quickly and strongly as possible when the coronavirus outbreak subsides.”
