The government has launched a new Bounce Back loan scheme. This complements the Coronavirus Business Interruption Loan Scheme (CBILS) and is aimed at small businesses with turnover of under £500k.
The scheme opened on Monday 4th May and has the following key features:
- Between £2,000 and £50,000 can be borrowed (although the scheme is capped at 25% of turnover)
- Funds are accessible within days
- Loans will be interest free for the first 12 months
- No loan repayments are required in the first 12 months
- The interest rate is capped at 2.5% making it extremely cheap borrowing
- Loan terms are up to 6 years
- Neither forecasts nor business plans will be required (the application consists of a 2 page application form)
- No personal guarantees are required as the loans are 100% backed by the government
There are some eligibility criteria for loans:
- Your business must have been trading as of 1st March 2020
- You must not be in receipt of a CBILS loan
- Your business must have been negatively impacted by Coronavirus
See further information about the new Bounce Back loan here and find out if you are eligible here.
Businesses can also check their eligibility for the government’s various support measures by accessing the online business support finder tool.
