04 May Bounce Back Loans Now Open
What are Bounce Back Loans?
Bounce Back Loans are aimed specifically at small and medium-sized businesses and are 100% guaranteed by government. Eventually about 40 accredited lenders will deliver the scheme.
Which organisations are eligible?
UK-based businesses that have been negatively affected by coronavirus – and which were not an ‘undertaking in difficulty’ on 31 December 2019 – are eligible. Banks, insurers, re-insurers, public sector organisations and state-funded primary and secondary schools are not eligible.
How much can my business borrow?
You can apply for a Bounce Back Loan of up to 25% of your turnover (up to a ceiling of £50,000). The smallest amount you can borrow is £2,000. Importantly, there is no forward-looking test on viability – meaning acceptance rates will be high.
When can I apply for a Bounce Back Loan?
You can apply from 9am on Monday 4th May. You apply via your current bank (if they are an accredited lender) or any of the lenders listed here.
What are the repayment terms?
There will be no fees or interest on loans for the first 12 months. You do not have to make any repayments during the first 12 months either. Loans can be for up to six years. The government is still talking to lenders about interest rates, with a view to keeping them as low as possible.
How long will it take to receive a Bounce Back Loan?
You should receive your money within 24 hours of approval.
I’ve already got a Coronavirus Business Interruption Loan. Can I apply for a Bounce Back Loan?
No. However, if you have already borrowed up to £50,000 under CBILS, you can ask your lender to transfer this to the Bounce Back Loan Scheme. You have until 4th November to do this
If you would like any further information on the above please contact us.