The UK government’s Bounce Back Loan Scheme is now open for applications.
This scheme helps small and medium-sized businesses affected by coronavirus (COVID-19) to borrow between £2,000 and £50,000.
The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. Loan terms 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 – including the majority of high street banks.
Eligibility – You can apply for Bounce Back 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 for a Bounce Back Loan
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- 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). However, 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 for a Bounce Back Loan
The full rules of the scheme and guidance on how to apply is available on the British Business Bank website, together with a list of accredited lenders.LATEST INFO ON COVID-19