The Bounce Back Loan Scheme will enable small businesses affected by the pandemic to borrow between £2,000 and £50,000 in an initiative described by the Chancellor as “an easy solution for those in need of smaller loans”.
What is the benefit?
- Loans of between £2,000 & £50,000 are available to businesses.
- Businesses can apply for 25% of their turnover and the government will pay the interest for the first 12 months.
- There are no REPAYMENTS to pay on the loans for a year.
- You will not need to put up a personal guarantee
- The government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan.
- The government provides the bank with a 100% guarantee on the loan.
How to access the scheme?
- “There will be no forward-looking tests of business viability; no complex eligibility criteria; just a simple, quick, standard form for businesses to fill in,” said Sunak.
- You cannot apply if you are already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS)
- 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.
Feedback
So far we’re hearing from clients who have applied that it’s very straight forward and money is making it to their account within days.