Greater Manchester Combined Authority has pledged £10m to support businesses based in the region who are unable to access the Bounce Back Loan Scheme.

The move is in response to gaps in Bounce Back loan availability for some Greater Manchester based SMEs following the second lockdown, this is the first UK combined authority to offer such assistance.

GC Business Finance will be looking to support those businesses not already banking with existing Bounce Back Loan providers

Applications from Greater Manchester businesses are welcomed from today through an online application.  Applications will close once the fund is fully committed.

The funding follows recognition of the gap emerging in the market for those local businesses who are dependent on a Bounce Back loan to continue to survive and grow, despite the pandemic.

The loans are 100% guaranteed by the Government but funded by GMCA.  They are estimated to be eligible for approximately 98% of Greater Manchester SMEs.

As with the existing BBLS and CBILS, no interest will be due for the first 12 months, and the interest rate is set at 2.5% per year after the first year.

The fund targets eligible SMEs if their own bank is not an existing provider of the scheme, providing loans of up to £50,000 packaged with integrated business support in a local approach unique across the UK.

GCBF anticipate high demand, supporting applicants on a first come first served basis and expects the fund to be fully committed relatively quickly, at which point the fund will close.

Funding provided to GC Business Finance will be available immediately and will be accessible to small and medium-sized Greater Manchester businesses, with loans ranging from £2,000 to £50,000.