Government announced Bounce Back Loan scheme to help 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. The 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 government will work with lenders to agree a low rate of interest for the remaining period of the loan, more details to be published by www.gov.uk soon.
Who is eligible to apply
- Business is based in the UK
- It has been negatively affected by coronavirus
- It was not an ‘undertaking in difficulty’ on 31 December 2019
How do I apply for a Bounce Back Loan
The loans will be easy to apply for through a short, online application. The Government are suggesting that the loan should reach your business within days.
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
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.
We hope this information helps you and we are here for you during this difficult time. We will continue to keep you updated as the Government releases new information. Our business contingency plan is in place and we will do everything we can to support our clients during this uncertain period, please do not hesitate to contact us here if you have any concerns or queries.