Small businesses boosted by bounce back loans

New 100% government backed loan scheme for small business.

This scheme will help small and medium-sized businesses affected by coronavirus (COVID-19) to apply for loans of up to £50,000. The scheme is not available yet, it will launch on 4 May 2020.

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.

 

Eligibility

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

 

Who cannot apply

The following businesses are not eligible to apply:

  • banks, insurers and reinsurers (but not insurance brokers)
  • public-sector bodies
  • further-education establishments, if they are grant-funded
  • state-funded primary and secondary schools

 

If you’re already claiming funding

 

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

The Bounce Back Loan scheme will launch on 4 May 2020. More information about the scheme will be published shortly. Link below for more up to date information: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

For further information please contact Stephen Garbett, Director of Corporate Finance sgarbett@garbutt-elliott.co.uk