SMALL businesses will be eligible for new fully government-backed “micro” loans worth up to £50,000, it was announced yesterday.

Chancellor Rishi Sunak made the statement in the Commons and MPs asked questions via videolink, as the new “virtual” Parliament adhered to social-distancing rules.

He said firms struggling during the coronavirus pandemic can receive “bounce back” loans worth up to 25 per cent of turnover. The government will pay interest for the first year, he said.