Support 100 years of independent journalism.

  1. Science & Tech
  2. Coronavirus
27 April 2020updated 06 Oct 2020 9:45am

Sunak announces small businesses “microloan“ scheme, government to pay interest for 12 months

By Samuel Horti

Chancellor Rishi Sunak has unveiled a new “microloan” scheme for small businesses that will see the government pay the first 12 months’ interest on loans of up to £50,000.

The “bounce back loans” will let businesses borrow 25 per cent of their turnover up to a maximum of £50,000. As well as paying the interest for a year, the government will fully guarantee the loans, he said.

The loans will be available from banks starting 9am next Monday, 5 May. Most firms will receive their money within 24 hours, he said.

“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,” Sunak said.

Sign up for The New Statesman’s newsletters Tick the boxes of the newsletters you would like to receive. Quick and essential guide to domestic and global politics from the New Statesman's politics team. The New Statesman’s global affairs newsletter, every Monday and Friday. The best of the New Statesman, delivered to your inbox every weekday morning. A handy, three-minute glance at the week ahead in companies, markets, regulation and investment, landing in your inbox every Monday morning. Our weekly culture newsletter – from books and art to pop culture and memes – sent every Friday. A weekly round-up of some of the best articles featured in the most recent issue of the New Statesman, sent each Saturday. A weekly dig into the New Statesman’s archive of over 100 years of stellar and influential journalism, sent each Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy

New Statesman political editor Stephen Bush believes Sunak’s decision to give small businesses guarantees that he hasn’t given larger ones is a big hint at where he’ll take British fiscal policy after the crisis. You can read his full analysis here.