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Today the government has announced a new small and medium-sized business bounce back loan scheme.
The loan has been described as a “bounce back loan” and should help all those small businesses that were struggling to access the original Coronavirus Business Loan Scheme (CBILS).
The loan scheme will launch on 4 May 2020 and payments should be made within 24 hours of acceptance. Some initial details have been released but not too much information at this stage.
– The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000.
– The government will guarantee 100% of the loan.
– There will not be any fees or interest to pay for the first 12 months.
– The loan term will be up to 6 years.
– No repayments will be due during the first 12 months.
– The government will work with lenders to agree a low rate of interest for the remaining period of the loan.
– The scheme will be delivered through a network of accredited lenders.
You can apply for a loan if your business:
- is based in the UK
- has been negatively affected by the Coronavirus
- was not an ‘undertaking in difficulty’ on 31 December 2019 (No clarification of this phrase has been provided yet)
Who cannot apply
The following businesses are not eligible to apply:
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- further-education establishments, if they are grant-funded
- state-funded primary and secondary schools
If you’re already claiming funding
You cannot apply if you’re 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.
How to apply
The Bounce Back Loan scheme will launch on 4 May 2020. There is no other information available on how to apply just yet.
As soon as we know some more information we will of course let you know.