On Monday the Chancellor announced details of the Bounce Back Loan Scheme which will launch on 4 May 2020 and will help small and medium-sized businesses to borrow between £2,000 and £50,000.
Through the scheme 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 is working with lenders to offer a low rate of interest for the 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
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 for funding through the scheme if you are already claiming support under the Coronavirus Business Interruption Loan Scheme (CBILS).
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.
More information about the scheme will be published shortly.