CORONAVIRUS BOUNCE
BACK LOAN
Support to Small and Medium Businesses
This scheme will help small and medium-sized businesses affected by coronavirus (COVID-19) apply for loans of up to £50,000.
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KEY POINTS FOR BUSINESS OWNERS
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The bounce back loan scheme will help small and medium-sized businesses to borrow up to a maximum of £50,000 or 25% of turnover.
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The government will guarantee 100% of the loan and there won't be any fees or interest to pay for the first 12 months.
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Loan terms will be up to 6 years. No repayments will be due for the first 12 months.
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After 12 months, the interest rate will be 2.5% a year.
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There will be no forward-looking test of business viability nor complex eligibility criteria, just a simple form for businesses to fill in.
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For most businesses, loans should arrive within 24 hours of approval.
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The scheme will be delivered through a network of accredited lenders.
ELIGIBILITY
You can apply for a loan if your business:
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is based in the UK
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has been negatively affected by coronavirus
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was not an 'undertaking in difficulty' on 31 December 2019
The following businesses are not eligible to apply:
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banks, insurers and reinsurers (but not insurance brokers)
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public-sector bodies
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further-education establishments, if they are grant-funded
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state-funded primary and secondary schools
WHAT IF YOU ARE 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 to the Bounce Back Loan Scheme, you can arrange this with your lender up until 31 January 2021.
HOW TO APPLY
There are currently 29 lenders participating in the scheme including many of the main retail banks. You should approach a suitable lender yourself via the lender's website. You will have to fill in a short online application and self declare that you are eligible. The lender will then decide whether to offer you a loan or another type of finance.