Coronavirus Bounce Back Loans
Chancellor Rishi Sunak announced on Monday 27th April the launch of a new fast-track finance scheme to support SMEs during the Coronavirus pandemic and bolster the existing package of support available under CBILS. The new ‘Bounce Back Loans’ scheme will allow businesses affected by Covid-19 to apply for loans from £2,000 to £50,000 and access the cash within days.
The scheme is set to launch for application on the 4th of May 2020.
- Loans of between £2,000 and £50,000
- Loans terms up to 6 years
- No fees of interest to pay for the first 12 months
- No loan repayments will be due during the first 12 months
- Government will guarantee 100% of the loan.
The Government will work with lenders to agree a low rate of interest for the remaining period of the loan.
The loans will be easy to apply for through a short, standardised online application and should reach businesses within a few days.
“Our smallest businesses are the backbone of our economy and play a vital role in their communities” – Rishi Sunak, Chancellor of the Exchequer.
Am I eligible?
You can apply for a loan if your business:
- is UK-based
- has been negatively affected by Coronavirus
- was not an 'undertaking in difficulty' on 31 December 2019
You cannot apply if you are one of the following businesses:
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- state-funded primary and secondary schools
What if I’ve already claimed under CBILS?
You cannot apply if you're already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS). However, if you've already received a loan of up to £50,000 under CBILS you will be able to transfer the sum over to the 'Bounce Back Loan' scheme; you can arrange this with your lender up until 4 November 2020.
More information about the scheme will be published shortly on www.gov.uk.
What other support have the Government announced?
- Job Retention Scheme
- Business Grants
- Coronavirus Business Interruption Loan Scheme (CBILS)
- Coronavirus Large Business Interruption Loan Scheme (CLBILS)
- VAT Deferrals
- Scrapped Businesses Rates
- Covering the Cost of Statutory Sick pay
You can get more details on these financial support schemes at https://www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19.