The government has announced a new loan scheme for small businesses. Through the Bounce Back Loan scheme, businesses will be able to borrow between £2,000 and £50,000 with the scheme 100% government backed.
The application process will open on 4 May and will be straightforward with a short online form. It is expected that businesses should receive cash within days of successful application. No repayments, fees or interest will be due for the first 12 months. Loan terms will be up to six years, with the scheme delivered through a network of accredited lenders.
Stephen McConnell, Business Services Partner said “Working capital is a real and immediate concern for many small businesses so having quick access to these funds will be vital”.
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
- further-education establishments, if they are grant-funded
- state-funded primary and secondary schools
- Businesses 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 await further details of the application process. If you have any queries please contact Stephen McConnell, Business Services Partner by email firstname.lastname@example.org or Tel: 028 9032 3466.