Bounce Back loan announced for small businesses affected by Coronavirus (COVID-19)
Chancellor Rishi Sunak’s new ‘Bounce Back’ loan scheme is a welcome step in ensuring small businesses affected by Coronavirus (COVID-19) can access vital cash.
The scheme will offer firms loans of between £2,000 and £50,000 and will require filling in a two-page self-certification form online. Small firms can apply for the 100 per cent taxpayer-backed loan from Monday 4th May 2020. Loan terms will be up to 6 years. No repayments will be due during the first 12 months and 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
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
You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS). However, 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