Council chiefs say bounce back loans could help small firms and sole traders across Lichfield and Burntwood recover from the impact of the coronavirus crisis.

The scheme sees lenders offer a flat rate of 2.5% interest on borrowing between £2,000 and £50,000.

The Government will provide lenders with a guarantee and cover the cost of any fees and interest for the borrower for the first 12 months – with no repayments due during this period to enable firms to get back on their feet.

Cllr Iain Eadie, cabinet member for investment, economic growth and tourism at Lichfield District Council, said the latest measure was another way of ensuring businesses would survive the COVID-19 pandemic.

“The bounce back loans on offer now could give small firms and sole traders access to vital funds, especially where they were not eligible for a grant.

“Hopefully this will give them access to funds without the previous coronavirus business interruption loan scheme delays, that will help them to meet their ongoing bills and protect jobs.

“We are encouraging local businesses that need access to cash now, to take a look at the terms and make sure a loan is right for them.”

Cllr Iain Eadie, Lichfield District Council

The bounce back loans scheme comes on the back of other measures, including small business grants and retail, hospitality and leisure grants distributed by Lichfield District Council.

So far it has given almost £16million to 1,587 local businesses.

“I would like to pay tribute to our hard working staff who have made sure small businesses have been able to access the Government grants they are entitled to as quickly as possible and by promoting all the other support schemes that are available.

“Lichfield District Council has led the way in Staffordshire on supporting our local businesses.

Cllr Iain Eadie, Lichfield District Council

Ross

Founder of Lichfield Live and editor of the site.