The Bounce Back loan scheme which is set to launch on Monday 4th May 2020 is aimed to help small and medium-sized businesses to borrow between £2,000 and £50,000.
It has been announced that the Government will guarantee 100% of the loan with no fees, interest or repayments due during the first 12 months. Terms of up to 6 years can be agreed and the Government will work with lenders to agree a lower rate of interest for the remaining period of the loan. The scheme will be provided through a network of accredited lenders and in order to be eligible to apply for a loan, your business must meet the following criteria:
- is based in the UK
- has been negatively affected by Coronavirus
- was not an ‘undertaking in difficulty’ on 31st December 2019
However, there are limits to the availability of the loan as businesses within the following sectors are not eligible to apply:
- bankers, insurers and re insurers (this does not apply to insurance brokers)
- public-sector bodies
- further-education establishments, if they are grant-funded
- state-funded primary and secondary schools
Note. You cannot apply for the Bounce Back Loan scheme if you are already claiming under the CBILS (Coronavirus Business Interruption Loan Scheme), 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 4th November 2020.
More information is expected to be released about the scheme shortly which we will publish in due course. However, if you have any concerns or questions regarding the support available for your business during these uncertain times, please don’t hesitate to get in touch with our team on 01226 298 298.