The Government yesterday announced a further Loan Scheme, to be known as the Bounce Back Loan Scheme.
This scheme will help small and medium-sized businesses affected by coronavirus (COVID-19) to apply for loans of up to £50,000
This scheme is not available yet. It will launch on 4 May 2020.
- What is The Bounce Back Loan?
- The Bounce Back Loan scheme is intended to assist small and medium-sized businesses to borrow between £2,000 and £50,000;
- The government will guarantee 100% of the loan and there will not 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 are eligible for the Scheme if your business:
- is based in the UK;
- has been negatively affected by coronavirus;
- was not an ‘undertaking in difficulty’ on 31 December 2019
- You may not make a claim for this loan if you are already, or are intending, making a claim for the Coronavirus Business Interruption Loan Scheme (CBILS).
- However, if you have already received a loan of up to £50,000 under CBILS 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 Access the Scheme
- Details are to be announced shortly – you cannot apply before the Scheme is launched which is expected to be 4 May 2020.