Chancellor unveils 'Bounce Back Loans' for micro businesses: firms react

Today (April 27) Chancellor Rishi Sunak announced the launch of a new fast-track system for lending for small businesses during the COVID-19 pandemic.

Businesses and organisations from across the country have shared their reactions to the news.

Mike Cherry, national chairman for Federation of Small Businesses (FSB)

“The decision by the Chancellor to listen to our recommendation for a 100 per cent guarantee on smaller loans, alongside the creation of a new fast-track system for those applying for them, will give hope to thousands.

“The headline terms will be hugely welcomed by the sole traders and micro businesses that make-up 95 per cent of the small businesses community. Removing the need to provide forecasts marks an important step forward – small firms cannot be expected to predict the future in this climate.

“From here, we need the right delivery. The new fast-track system must be established by next Monday with money delivered 24 hours after a successful application as promised.

“All those who have been declined a small coronavirus business interruption loan scheme (CBILS) facility should now be written to with the offer to re-apply via this new system. Those mid-way through a standard CBILS application should also be given the option to change tack.

“Many small businesses have had to pay March and April’s payroll, on top of other overheads, with no revenue coming in at all. The CBILS initiative was their only lifeline until job retention scheme payments kicked in. It has so far proved to be extremely difficult to access for the vast majority.

“Today’s announcement promises to change that fundamental lack of access to working capital.

“In the long-term, we need to protect the competition achieved in the small business lending market that so many have fought so hard to secure.”

Emma Jones, founder of small business support network Enterprise Nation

“These new ‘bounce-back loans’ will close one of the gaps facing micro firms.

“The Chancellor is correct that this group are less keen and less able to take on debt under normal circumstances - but may now feel slightly more confident that this bridging finance now exists.

“The big question now is whether the banks can actually make this work and get those loans out of the door in 24 hours.

“The other question is over whether they will be affordable in the long run.”

Adam Marshall, Director General of the British Chamers of Commerce (BCC)

“The Chancellor has demonstrated he is listening to the concerns of our business communities and taking steps to get cash to the front line where it is needed.”

“This new route for our smallest companies to apply quickly and get a fast decision will be crucial to those who have struggled to get a CBILS loan.”

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