Small businesses across the High Peak will benefit from a new fast-track finance scheme providing loans with a 100 per cent Government-backed guarantee for lenders.

High Peak MP Robert Largan has welcomed the new Bounce Back Loans Scheme, which will provide loans of up to £50,000, and help bolster the existing package of support available to the smallest businesses affected by the Coronavirus pandemic.

The Scheme has been designed to ensure that small firms which need vital cash injections to keep operating can get the finance they need in a matter of days. This comes alongside the £6 billion awarded in business grants, supporting 4 million jobs through the Coronavirus Job Retention Scheme and tax deferrals supporting hundreds of thousands of firms.

The Government, which has been consulting extensively with business representatives about the design of the new scheme, will provide lenders with a 100 per cent guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.

The loans will be easy to apply for through a short, standardised online application. The loan should reach businesses within days, providing immediate support to those that need it as easily as possible.

The Scheme will launch for applications on Monday 4 May. Firms will be able to access these loans through a network of accredited lenders.

Robert Largan MP commented: 

“I’m pleased that this scheme is in place and will help small businesses here in the High Peak. Small businesses are vital in ensuring our communities thrive and will be crucial in creating jobs and securing economic growth as we recover.

“This is a strong addition to the package of support, including business grants, tax deferrals, and the job retention scheme, which are already helping to support hundreds of thousands of small businesses.”