UK to introduce micro-loan scheme for small businesses

In the UK, the government will introduce a new micro-loan scheme for small businesses, in response to the impact of the coronavirus lockdown, reports the Bookseller.

From 4 May, businesses will be eligible for loans of a value up to 25% of turnover, to a maximum of £50,000 (A$96,250). The government will pay the interest for the first 12 months of the loans, which are 100% guaranteed by the Treasury.

Chancellor Rishi Sunak said the loans should arrive within 24 hours of being approved for most firms.

The announcement of the new loans scheme came following a call for more government support for the UK’s creative industries, with a warning from leading figures that half the UK’s creative businesses could be lost in the pandemic—many due to financial reserves running out within weeks.

Category: International news