“Bounce Back” Loans
Updated to 4 May 2020.
The Government has announced a new 100% Government backed loan scheme for small businesses. The scheme is now open.
According to the Chancellor:
- 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
- interest will be charged at a flat 2.5% thereafter
- loan terms will be up to 6 years.
- no repayments will be due during the first 12 months.
Businesses will be able to access these loans through a network of accredited lenders, applying online through a short and simple form with only seven questions.
Eligible companies will still be subject to standard customer fraud, anti-money laundering (AML) and know your customer (KYC) checks prior to any loan being made.
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.
Who cannot apply
The following businesses are not eligible to apply:
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- state-funded primary and secondary schools
- if you are already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).
When does it start
The scheme launched for applications on Monday 4 May.
For further details see: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan