On 4 May the Government introduced the new Bounce Bank Loan scheme has been introduced to help small and medium-sized businesses affected by coronavirus (COVID-19) to access loans and borrow between £2,000 and £50,000.
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.
To be eligible and apply for the loan your business must:
- be based in the UK; and
- have been negatively affected by coronavirus.
Can I apply if I’ve made any other claims?
You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS) https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme
However, any business that has already taken out a Coronavirus Business Interruption Loan of £50,000 or less can apply to have these switched over to this generous new scheme.
How to apply
The full rules of the scheme and guidance on how to apply is available on the British Business Bank website https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/
You will need to complete a simple online form, with only seven questions.
What will it cost?
The government has also agreed with lenders that an affordable flat rate of 2.5% interest will be charged on these loans.