Chancellor Rishi Sunak announces 100% taxpayer-backed loans for small firms

Chancellor Rishi Sunak told the House of Commons the scheme would start next week, offering firms loans up to £50,000 within days of applying. Small firms are to get access to 100% taxpayer-backed loans after concerns where raised about slow access to existing coronavirus rescue schemes.

more details need to follow on how firms will access this new loan.

Oliver Prill, Tide CEO said: “Small businesses have been disproportionately impacted by this crisis. As a business banking platform providing services to 1 in 40 UK SMEs, we welcome the introduction of the new Bounceback Loans. The only way to make sure vital cash gets to SMEs is with a 100% guarantee on loans of up to £50,000.

“However, we are extremely concerned that this scheme will encounter the same issues as the CBILS, particularly a lack of reach. We implore the Treasury and British Business Bank to allow Fintechs like Tide to deliver this funding as quickly as possible. We are ideally placed to distribute funds to small businesses and want to get started as soon as possible. By offering the scheme only via traditional bank lenders, a fifth of small businesses will not get easy access. Tide has already been contacted by small businesses asking if they can access Bouncebank Loans via our platform, and we are desperate to provide this vital support to our members.”

We will discuss this and other areas in our rescheduled webinar “Can FinTechs save the UK Economy – PART3” Register here