The new Bounce Back Loans Scheme, announced by the Chancellor last month, will allow small and medium businesses to borrow between £2,000 and £50,000 and access the cash within days.
Loans will be interest free for the first 12 months, and businesses will be able to apply online through a short and simple form.
Firms will be able to access these loans through a network of accredited lenders, via the British Business Bank. The Government will work with lenders to ensure loans delivered through the scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan.
Businesses can apply for a loan if they:
- Are based in the UK.
- Have been negatively affected by coronavirus (COVID-19).
- Were not an ‘undertaking in difficulty’ on 31 December 2019.
- Further education establishments, if they are grant-funded, can also apply.
The scheme aims to bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic. It will run alongside the Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS).
Businesses that have already received a loan of up to £50,000 under the CBILS and would like to transfer it into the Bounce Back Loan Scheme can arrange this with their lender until 4 November 2020.
Applications for Bounce Back Loans are now open.