| Hi,
If the information below is not relevant to you, please feel free to pass this to someone you know who would find it informative.
Today the government has announced a new small and medium-sized business bounce back loan scheme.
The loan has been described as a “bounce back loan” and should help all those small businesses that were struggling to access the original Coronavirus Business Loan Scheme (CBILS).
The loan scheme will launch on 4 May 2020 and payments should be made within 24 hours of acceptance. Some initial details have been released but not too much information at this stage.
– The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000.
– The government will guarantee 100% of the loan.
– There will not be any fees or interest to pay for the first 12 months.
– The loan term 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 scheme will be delivered through a network of accredited lenders.
Eligibility
You can apply for a loan if your business:
- is based in the UK
- has been negatively affected by the Coronavirus
- was not an ‘undertaking in difficulty’ on 31 December 2019 (No clarification of this phrase has been provided yet)
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’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.
How to apply
The Bounce Back Loan scheme will launch on 4 May 2020. There is no other information available on how to apply just yet.
As soon as we know some more information we will of course let you know.
Take care
Neil |
