COVID-19 - GOVERNMENT ANNOUNCES BOUNCE BACK LOANS

COVID-19 - BUSINESS NEWS UPDATE:
GOVERNMENT ANNOUNCES "BOUNCE BACK" LOANS

The Government has announced a new 100% Government backed loan scheme for small businesses.

Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders.

Rishi Sunak said the new Bounce Back Loans scheme, which will provide loans of up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.

- Businesses will be able to borrow between £2,000 and £50,000 and access the cash within days.

- Loans will be interest free for the first 12 months, and businesses can apply online through a short and simple form.

- Loan terms will be up to 6 years.

- No repayments will be due during the first 12 months.

The scheme will launch for applications on Monday 4 May. Businesses will be able to access these loans through a network of accredited lenders.

The government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan:

ELIGIBILITY

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.

 

WHO CANNOT APPLY

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

- if you are already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS)

More information about the scheme will be published shortly.

For further details, please see: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

 


Take care and keep safe.