Bounce Back Loans
The Government have launched a scheme to help small and medium-sized businesses to borrow between £2,000 and £50,000.
This scheme is not available yet. It will launch on 4 May 2020.
The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. You remain liable for the full debt, the Government will step in only if you fail to pay the money back. There are no personal guarantees on the loan as far as we know at the moment. More information is due shortly.
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 – there is no definition of this phrase.
If you’re already claiming funding
You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).
If you’ve 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.