Yesterday the Government announced a new scheme which will help small and medium-sized businesses affected by Coronavirus to apply for loans of up to £50,000.
The Bounce Back scheme will launch on 4 May 2020 and will enable small and medium-sized businesses to borrow between £2,000 and £50,000.
The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.
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.
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
- further-education establishments, if they are grant-funded
- state-funded primary and secondary schools
You are also not eligible to apply if you are already claiming funding under the Coronavirus Business Interruption Loan Scheme. With this said, if you’ve already received a loan of up to £50,000 under Coronavirus Business Interruption Loan Scheme and would like to transfer it into the Bounce Back Loan scheme, you can arrange this with your lender until 4 November 2020.
How to Apply
The Bounce Back Loan scheme will launch on 4 May 2020.
More information about the scheme will be published shortly. To keep up to date, please visit the Governments website.