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“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.

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.

 

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.

 

Further Information

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

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