Bounce Back Loan Scheme

Key Points:

businesses will be able to borrow between £2,000 and £50,000 and access the cash within days
loans will be interest free for the first 12 months, and businesses can apply online through a short and simple form
Loan terms will be up to 6 years.
No repayments will be due during the first 12 months.

Background:

The Government has announced a new 100% Government backed loan scheme for small businesses.

Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders.

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

The government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan.

Eligibility:

You can apply for a loan if your business:

is based in the UK

has been negatively affected by coronavirus

was not an ‘undertaking in difficulty’ on 31 December 2019

The following businesses are not eligible to apply:

banks, insurers and reinsurers (but not insurance brokers
public-sector bodies
further-education establishments if they are grant-funded
state-funded primary and secondary schools
businesses already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).

More information about the scheme will be published shortly.

Further details see: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan