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The Government Have Introduced a Bounce Back Loan Scheme

Posted 28/04/2020

The Bounce Back Loan scheme will help small and medium-sized businesses affected by coronavirus to borrow between £2,000 and £50,000.

The loan amount will be capped at 25% of turnover.

The government will guarantee 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.

You can apply for a 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

You cannot apply if:

  • you are already claiming under the Coronavirus Business Interruption Loan Scheme.

The scheme will launch on 4 May 2020.

For more details please see https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

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