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UPDATED 29 APRIL 2020

GOVERNMENT ANNOUNCES “BOUNCE BACK” LOANS

 

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 Chancellor announced yesterday.

 

Rishi Sunak said the new Bounce Back Loans scheme, which will provide loans of up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.

 

  • 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. 

 

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.

 

WHO CANNOT APPLY

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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

  • if you are already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).

 

More information about the scheme will be published shortly.

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

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