Covid-19: Financial Support: Bounce Back Loan Scheme
On the 27th of April the government announced another financial support scheme that will provide much needed aid to SME’s. Whilst there has been controversy over the difficulty that many businesses who needed essential support have been unable to access the Coronavirus Business Interruption Loan Scheme (CBILS) the Newly announced scheme is intended to rectify this and bridge the gap. The Bounce Back Loan scheme is designed to support small and medium-sized businesses looking to borrow between £2,000 and £50,000.
On the 4th of May it is expected the scheme will be open for applications. The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. This will be a lighter touch in relation to the application process, and the intention is that the funds should be received within 24 hours of the application being made.
Loan terms will be up to 6 years. No repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.
The scheme will be delivered through a network of accredited lenders.
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
You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).
If you want to learn more please click here to check on the governments guidance around this loan scheme
What other support are you entitled too? Click here and find out within 6-8 questions
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