Launching today (4th May 2020) the Coronavirus Bounce Back Loan scheme is set to help small and medium-sized businesses to borrow between £2,000 and £50,000.
The government guarantees 100% of the loan meaning there won’t be any fees or interest to pay for the first 12 months.
Loan terms will be up to 6 years and there will be no repayments in the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.
To be eligible for the loan your business should be based in the UK, has been negatively affected by the Coronavirus and was not an ‘undertaking in difficulty’ on 31st December 2019.
The following businesses will not be eligible to apply:
- banks, insurers and re-insurers (not insurance brokers)
- public sector bodies
- state funded primary and secondary schools
- businesses that are in bankruptcy or liquidation or undergoing debt restructuring at the time the application is submitted
How to apply for the loan:
- Find a BBLS accredited lender
- Approach the lender. Ideally through their website. In first instance you should go to your own provider, however if you are unable to access the finance you need, then check out the other providers. You will fill in an online application form, which will certify if your business is eligible for the loan or not. The provider will then carry out some checks on your business.
- The lender makes a decision. The lender has the choice offer you the finance or not. Although the lenders are not allowed to take any form of personal guarantee or take recovery action over a borrowers personal assets (e.g. house or car)
- The lender may turn you down. Even if one lender turns you down you can go to the other lenders within the scheme.
Click here for more information on the loan
Click here for more information on how to apply