Sunak’s small business bounce back loans: Justifiably praised but they aren’t risk free

The chancellor and his team have made this scheme quicker, simpler and 100% state guaranteed but hurdles aplenty remain, says James Moore

Rishi Sunak: the chancellor has made his new business loan scheme simple to apply for (AFP/Getty)

The applications are pouring in and if the government’s emergency Bounce Back Loan Scheme lives up to the hype, the money will be pouring out very soon. If.

Up to £50,000 is being made available to businesses that were trading prior to 1 March via banks, with the stipulation that they weren’t in financial difficulty at the time. This is not intended as a bailout, and while the application process is supposed to be simple, checks will still have to be made.

The pre-existing Coronavirus Business Interruption Loan Scheme, which offers up to £45m and is 80 per cent underwritten by the taxpayer, has faced criticism for getting money out too slowly.