Chancellor announces "bounce back loans" in Commons
Chancellor Rishi Sunak said he was grateful to the banks "for reengineering their entire systems to offer this brand new bounce back loan".
The new micro loan scheme is due to be available from 4 May 2020, 9am. Loans are expected to be deposited within 24 hours of approval.
Bounce back loans will allow businesses to apply "for 25% of their turnover up to a maximum of £50,000, with the government paying the interest for the first 12 months" Sunak said.
The government will support lending through this scheme in particular, by guaranteeing to the lender 100% of the loan.
The chancellor said the application process would be simple and banks wouldn't carry out more than customary fraud and anti-money laundry checks.