Small businesses (limited companies, sole traders and partnerships) are eligible for the government-backed bounce back loans of between £2,000 and £50,000 to help them through the Covid-19 outbreak.
Small business owners can apply to accredited lenders by filling out a simple online form which has just seven questions.
A flat rate of interest of 2.5% will be charged on these loans.
Any business that has already taken out a coronavirus business interruption loan (CBIL) of £50,000 or less can apply to have this switched over to this new scheme.
The government will provide lenders with a 100% guarantee and cover the cost of any fees and interest for the borrower for the first 12 months. No repayments will be due during this period to enable firms to get back on their feet.
The loans are available through a network of lenders, including the five largest banks.
Eligible companies will be subject to standard customer fraud, anti-money laundering (AML) and know your customer (KYC) checks prior to any loan being made.