The Chancellor announced yesterday that small businesses will benefit from a new ‘Bounce Back Loan’ scheme providing loans with 100% government-backed guarantee for lenders. The scheme will enable small and medium-sized businesses to borrow between £2,000 and £50,000.
The government will guarantee 100% of the loan, with no fees or interest to pay for the first 12 months. The loan term will be up to 6 years and there will be no repayments due for the first 12 months.
You can apply for a loan if your business is based in the UK and has been negatively affected by Coronavirus.
The scheme will launch on 4th May 2020.
If you have already claimed for funding through the Coronavirus Business Interruption Loan Scheme (CBILS) you are not eligible for the Bounce Back Loan. However, if you have received a loan of up to £50,000 under the CBILS and would like to transfer it to the Bounce Back Loan Scheme, you can arrange this up to 4th November 2020.