Bounce Back Loan Scheme
What is it?
This new loan scheme was announced on 27th April, and is targeted to small businesses, with loans of between £2,000 and £50,000
The loans will be much quicker and easier to apply for and receive than the existing Business Interruption Loan Scheme; the government announced that the loans will be paid within days of applying, and within 24 hours of approval.
Like with the existing loan scheme, interest is covered by the Government for the first 12 months.
No repayments will be due on the scheme for the first 12 months.
How to apply
The application is short and simple: there are no forward-looking tests, just a standard form to fill in.
Businesses can apply for up to 25% of their turnover.
Applications can be made from Monday 4th May 2020.
Businesses will access the loans through accredited lenders.
The applications are not yet open – look at this page on gov.uk on 4th May to apply.
Eligibility
To apply for this loan the business:
- must be based in the UK
- must have been negatively affected by coronavirus
- must not have been an ‘undertaking in difficulty’ on 31 December 2019.
- must not be claiming under the existing Coronavirus Business Interruption Loan Scheme (CBILS)