Bounce Back Loans will offer a lifeline to many small Burnley businesses, says MP

The 'Bounce Back Loans' were announced by Chancellor Rishi Sunak in the House of Commons yesterday following reports that many businesses were struggling to access credit quickly enough.

The loans, which will be available from 9am on Monday, May 4th, are 100% backed by the Government with no repayments due in the first 12 months.

They will also not be subject to business liability tests or complex eligibility criteria, and most applications will arrive within 24 hours.

Speaking in the Commons, Mr Sunak said they provided “a simple, quick, easy solution for those in need of smaller loans”.

Most eligible firms will be able to access them by filling out a standard form, with funds available within 24 hours of approval.

“I know some small businesses are struggling to access credit [and] if we want to benefit from their dynamism and entrepreneurial spirit, they will need extra support to get through this crisis," he said.

Burnley MP Antony Higginbotham said: “Over the last few weeks I have been speaking to local businesses daily and it has been clear that credit is not reaching them quickly enough.

"This latest measure from the Chancellor is therefore very welcome and will be a lifeline to many, demonstrating that we will do whatever it takes to support the economy.”