Bounce Back Loan Scheme, Insurance Cover and Welsh Government Support to Businesses

Bounce Back Loans

The new ‘Bounce Back Loan‘ is a UK fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders, for Small businesses (including sole traders); which should help to bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.

  • Businesses will be able to borrow between £2,000 and £50,000 and access the cash within days
  • loans will be interest free for the first 12 months, and businesses can apply online through a short and simple form

The scheme launched for applications on Monday 4 May and one SWOAPG Members has already reported that “the new bounce back loan is as good as it sounds…payment was within 24 hours!”

Insurance Cover

From Welsh Government: “The Association of British Insurers (ABI) members is working to support its customers by providing clear and quick answers to their questions. ABI has provided guidance on the common questions relating to insurance and other business issues; and further information including advice, guidance, and common questions relating to insurance can be found on the ABI Coronavirus Information Hub. See also ABI’s general guidance on Business Insurance cover.”

Welsh Government Support to Businesses

The Welsh Government has also reported that “half a billion pounds of relief grants has reached more than 41,000 small businesses in Wales in the space of just a few weeks.

“Minister for Economy, Transport and North Wales Ken Skates and Finance Minister Rebecca Evans have thanked local authorities throughout Wales for their hard work to swiftly process grant payments, ensuring small businesses receive speedy help to deal with the impact of the coronavirus (COVID-19) pandemic.

“This impressive effort has seen £508 million move from government to businesses in the last month. Retail, leisure and hospitality businesses in Wales occupying properties with a rateable value of between £12,001 and £51,000 have received a grant of £25,000. And a £10,000 grant has been paid to firms, which are eligible for small business rates relief and have a rateable value of £12,000 or less.

“All eligible businesses will also benefit from a year-long rates holiday. Work to process outstanding applications is continuing and more companies are receiving emergency coronavirus (COVID-19) grants daily. The £1.7 billion package of support from Welsh Government, which includes the Economic Resilience Fund, goes over and above what is available to businesses in England.”

SWOAPG has updated its Summary of Government assistance to businesses, employees and the self-employed to include this latest information.

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