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.
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
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
For more information about the scheme, eligibility and how to apply click here. Alternatively, please get in touch with your usual Jerroms contact or This email address is being protected from spambots. You need JavaScript enabled to view it., Jerroms Corporate Finance who is on-hand to assist with any queries and submissions surrounding the scheme.
