The government’s latest initiative to assist SMEs affected by the coronavirus is the Bounce Back Loans scheme which went live on Monday. It has been reported that the major UK banks received in excess of 45,000 applications to the scheme in a single day.
The Bounce Back Loans Scheme is intended to allow businesses to access finance more quickly than through the existing Coronavirus Business Interruption Loan Scheme (CBILS). The main points are:
- UK-based small and medium sized businesses can borrow between £2,000 and £50,000
- 100% of the loan is backed by the government
- No fees or interest payable within the first 12 months
- Loan terms will be up to 6 years
- 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
There are some businesses and organisations that are not eligible for the loan:
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- state-funded primary and secondary schools under the Coronavirus Business Interruption Loan Scheme (CBILS).
In addition, you cannot apply for the Bounce Back Loans Scheme if you are already claiming funding for the Bounce Back Loans Scheme if you are already claiming funding under the Coronavirus Business Interruption Loan Scheme (CBILS).
How to apply
Information about the Bounce Back Loan Scheme and how to apply can be found on the British Business Bank website.
The information provided in this blog is for general informational purposes only and should not be considered professional advice. As far as we are aware, the content is accurate at time of publication. Torgersens assumes no responsibility for errors or omissions in the content or for any actions taken based on the information provided.
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