If you are a business trading in the UK, it would have been difficult to remain unscathed in the wave of uncertainty and change brought on by the Coronavirus pandemic. On the 27th of April 2020 the Government announced a new financial assistance scheme, The Business Bounce Back Loans Scheme, for small and medium-sized businesses who are in distress as a result of the COVID19 pandemic.
It will allow sole traders and companies to apply for fast-track loans of upto £50000 which are 100% backed and guaranteed by the Government.
4 MAY 2020 – 9AM
Business bounce back loans go live…
Q: How much can you borrow?
A: The Business Bounce Back Loans scheme is designed to support small and medium-sized businesses looking to borrow between £2,000 and £50,000.
Q: What are is loan term available?
A: Loan terms will be up to 6 years.
Q: Interest and Fees and Repayments
A: So what are the Fees and repayments expected to be like.
- The government will guarantee 100% of the loan and
- there won’t be any fees or interest to pay for the first 12 months.
- No repayments will be due during the first 12 months.
Q: What will the interest rate be on Business Bounce Back loans?
A: There is no clear answer on this as of the date on this article, however, the Government is in talks with lenders to ensure that businesses who take this finance option will pay a low standardised rate of interest.
Get the latest information and advice on gov.uk
Q: Are you Eligible?
A: You can apply for a business bounce back loan if your business meets the following criteria:
- It is based in the UK
- Has been negatively affected by coronavirus
- Wasn’t an ‘undertaking in difficulty’1 on 31 December 2019
Q: Who cannot apply?
A: Your business is not likely to be eligible for this loan if it falls into any of the following categories:
- Banks, insurers and reinsurers
- Public-sector bodies
- Further-education establishments, if they are grant-funded
- You are primary and secondary school already funded by the government.
- You are already claiming under the CBILS scheme
Q: How to Apply ?
A: You can apply directly via your business banking provider, usually by logging into your online banking.
Q: When can you Apply?
A: Currently the scheme is set to go Live on the 4th May 2020 at 9AM