A new fast-tracked loan scheme for small businesses has been welcomed by Preseli MP Stephen Crabb.

The Bounce Back Loans scheme announced by Chancellor Rishi Sunak will provide loans of up to £50,000 to some of the smallest businesses affected by the coronavirus pandemic.

The scheme is designed to ensure small firms who need vital cash injections to keep operating can get finance in a matter of days, with the UK Government paying any fees and interest for the first 12 months and guaranteeing 100 per cent of the loan. No repayments will be due during the first 12 months.

It is intended that the loans will be easy to apply for through a short, standardised online application.

Mr Crabb said: “This is another positive step forward in support for small businesses hit by the coronavirus crisis. The main coronavirus business loans scheme has proven too slow and overly complex for the smallest companies struggling with cashflow at this time. This new Bounce Back scheme is much more suitable and will get to where it is needed quickly.”

He added: “Add this support together with the other measures already announced, and it’s clear that the UK Government is doing all that it can to safeguard businesses so that they can help kickstart the economy once we’re through this pandemic.”

The scheme will launch for applications on May 4. Firms will be able to access these loans through a network of accredited lenders.